2012-05-18_ENFORCEMENT - M1992102

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DIVISION OF RECLAMATION, MINING AND SAFETY Department of Natural Resources 1313 Sherman St., Room 215 Denver, Colorado 80203 Phone: (303) 866 -3567 FAX: (303) 832 -8106 May Judy DeVincentis /Western Gravel, Inc. 3001 N. Townsend Ave. Montrose, CO 81401 Washington International Insurance Company 475 N. Martingale Road, Suite 850 Schaumburg, Illinois 60173 Notice to all parties: STATE OF COLORADO 9rMi 5s5 C4 (y J On November 9, 2011 the Mined Land Reclamation Board (Board) after hearing testimony determined that the above named operator has not kept a financial warranty in good standing for the referenced permitted site pursuant C.R.S. 34- 32.5- 117(6)(a). Per violation MV- 2011 -038 the Board issued a cease and desist order barring any further mining or reclamation activities on site without Division approval, and issued a civil penalty of $5,100.00. The Board also determined that the permit and the financial warranty were subject to revocation and forfeiture. The Board Order directed the Division of Reclamation, Mining, and Safety to schedule a hearing for permit revocation and forfeiture of financial surety number in the amount of $101,175.00. COLORADO D I V I S I O N O F RECLAMATION MINING — &— SAFETY John W. Hickenlooper Governor Mike King Executive Director Loretta E. Pineda Director RE: South D -20 Pit, Montrose County, Permit No. M- 1992 -102, Notice of Resc Hearing of Permit Revocation and Financial Warranty Forfeiture, Washington International Insurance Bond No. in the amount of $101,175.00, MV-2011-038. The matter was continued from the February 8 2012 to the June 13 - 14th, 2012 Board hearing at the request of all parties. Western Gravel optioned to finish reclamation in an effort to reduce the reclamation liability and forfeiture of the referenced bond. The Division supported the continuance to exhaust all options prior to any final hearing on the issue. Pursuant to C.R.S. 34- 32.5- 118(2) whenever the Board has reason to believe that a financial warranty is subject to forfeiture, the Board shall so notify the Operator and all Financial Warrantors. The Board shall afford the Operator and all Financial Warrantors the right to appear before the Board at a hearing after the parties' receipt of said notice. This letter serves as the required notice to all parties. A formal board hearing of the continued enforcement action will be held during the June 13 - 14 th , 2012 for consideration of the revocation and forfeiture. The hearing will be held in Room 318, 1313 Sherman Street, Denver, Colorado, beginning at 9:00 a.m. or as soon thereafter as the matter can be considered. All parties have the right to be represented and heard at the hearing.