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6. On October 12, 2011, the Board held a hearing to consider alleged violations by <br />the Operator for affecting land outside the approved affected area boundary. The Board issued <br />an order, effective December 9, 2011 finding the Operator in violation of section 34-32.5 - <br />116(4)(i), C.R.S. ( "December 2011 Order") The Board ordered the Operator to complete <br />corrective action by providing all materials necessary for a 112c conversion application to secure <br />a reclamation permit for all areas affected by the mining operation within 60 days. The Board <br />also imposes a civil penalty of $4,200 with all but $200 of the penalty is suspended if the <br />Operator timely complied with the corrective action. <br />7. The Division received payment of the =suspended portion of the civil penalty <br />imposed, $200, on January 8, 2012. <br />8. The Operator failed to complete the corrective action ordered in the December <br />2011 Order. <br />9. On February 14, 2012, the Division issued a Reason to Believe a Violation <br />Exists letter to the Operator informing it of a possible violation for failure to comply with the <br />conditions of a Board order and failure to cure a default under a performance warranty. The <br />letter also provided information about the April 2012 hearing. <br />10. At the April 11, 2012 hearing, the Board found the Operator in violation of the <br />Colorado Land Reclamation Act for the Extraction of Construction Materials, Article 32.5 of <br />Title 34, C.R.S. (2010) ( "Act ") pursuant to section 34- 32.5124, C.R.S. for failure to comply <br />with an order, permit, or regulation and pursuant to section 34- 32.5- 118(1)(b), C.R.S. for <br />failing to cure a default under a performance warranty. The Board found that the full amount <br />of the civil penalty imposed by the December 2011 Order is due and payable, but the Board <br />waived all but $300 of that amount. The Board issued an order effective May 1, 2012 ( "May <br />2012 Order "). <br />11. On May 21, 2012, the Division received an incomplete 112c conversion <br />application and payment of the $300 =waived civil penalty. <br />12. On June 1, 2012, the Division mailed the Operator a notification that the 112 <br />conversion application is incomplete. <br />13. On July 3, 2012, the Division mailed the Operator and the Operator's financial <br />warrantor notice that the Board would consider forfeiture of the financial warranty at the August <br />2012 Board meeting. <br />14. At the August 2012 Board meeting, the Board continued consideration of this <br />matter to allow the Operator additional time, until August 31, 2012, to submit a conversion <br />application. <br />15. The Operator failed to file a conversion application by August 31, 2012. <br />Ignacio Vasquez, Sr. <br />Perdue Site, M -2000 -089 <br />MV- 2012 -016 <br />2 <br />