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DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />September 14, 2012 <br />Michael Pfister <br />Sanborn Sand and Gravel /dba Golden Cross Aggregate <br />2001 Platte Dr. <br />Breckenridge, CO 80424 <br />STATE OF COLORADO <br />RECEIVED <br />Division of Rec'amation, <br />Mining & Safety <br />RE: Reason to Believe a Violation Exists at Gloria Z Mine; DRMS File No. <br />M- 1984 -094 <br />Dear Mr. Pfister, <br />On August 30, 2012, the Division of Reclamation, Mining and Safety (Division) conducted an <br />inspection of the Gloria Z Mine and found the following: <br />The site contains 0.2 acres of exposed groundwater and the Operator has not obtained a well <br />permit, temporary substitute water supply plan or permanent augmentation plan. <br />Based on the findings of the inspection we believe that this is a violation of: <br />• C.R.S. 34- 32.5- 116(4)(h) for failure to minimize disturbances to the prevailing <br />hydrologic balance of the affected land and of the surrounding area and to the <br />quality and quantity of water in surface and groundwater systems. <br />OR <br />Mined Land Reclamation <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E Pineda <br />Director <br />• Construction Materials Rule 3.1.6(1)(a) for failure to comply with applicable Colorado <br />water laws and regulations governing injury to existing water rights. <br />Therefore, we have reason to believe that a violation exists to DRMS File Number M -1984 -094 <br />and to the Law, and have scheduled this matter to appear before the Mined Land Reclamation <br />Board. <br />A Formal Public Hearing will be held during the November 14 and 15 2012 Board Meeting <br />for consideration of a possible violation. The hearing will be held in Room 318 of 1313 <br />Sherman Street, Denver, Colorado, beginning at 9:00 a.m. on November 14 or as soon <br />thereafter as the matter can be considered. At that hearing you will have the opportunity to be <br />represented and heard. It will be reiterated that there is reason to believe that you are in violation <br />of the provisions noted above. <br />Office of Office of <br />Denver • Grand junction • Durango Active and Inactive Mines <br />