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February 7, 2003 <br />Mr. Steve Melvick <br />Stone Cliff Investments, LLC <br />P.O. Box 62052 <br />Colorado Springs, CO 80962 <br />RE: Reason to Believe a Violation Exists For Failure to Obtain a Reclamation Permit Prior to <br />Engaging in a New Operation, DMG File # M- 2003 -002; Ghost River Gravel Pit <br />Dear Mr. Melvick: <br />On January 29, 2003 the Division of Minerals and Geology conducted an inspection of the Ghost River Gravel Pit and <br />found the following: <br />1. A gravel crushing/screening deck with several other pieces of support equipment. <br />2. A small stockpile of processed gravel material and the footprint of what appeared to have been an <br />abandoned gravel/over- burden stockpile. <br />3. Newly constructed roads that were surfaced with the same material as the processed stockpile. <br />We believe that this is a violation of C.R.S. 34- 32.5 - 109(1) for failure to obtain a reclamation permit prior to engaging <br />in a new mining operation. Therefore, we have reason to believe that a violation exists to DMG File Number M -2003- <br />002 and to the Law, and have scheduled this matter to appear before the Mined Land Reclamation Board. <br />A Formal Public Hearing will be held during the February 25 -26, 2003 Board Meeting for consideration of a possible <br />violation. The hearing will be held in Room 318 of 1313 Sherman Street, Denver, Colorado, beginning at 10:00 a.m. <br />on February 25th or as soon thereafter as the matter can be considered. At that hearing you will have the opportunity to <br />be represented and heard. It will be reiterated that there is reason to believe that you are in violation of the provisions <br />noted above. <br />If the Board finds a violation at this hearing, it may issue a Cease and Desist Order and/or assess a Civil Penalty in the <br />amount of $ 1,000.00 to $5,000.00 for each day of violation. If you have evidence indicating that the possible <br />violations noted above do not exist or have been corrected, please provide it to us as soon as possible or bring it to the <br />hearing. <br />If you have any questions, please contact Tony Waldron at (303) 866 -3567. <br />Sincerely, <br />Ronald W. Cattany <br />Division Director <br />Enclosure(s) <br />Cc: Tony Waldron -DMG <br />Joe Gagliano -LJ Developmnet (w /enclosure) <br />Rex Angelovich -A & S Excavation and Construction (w /enclosure) <br />CERTIFIED MAIL NO. 7001 2510 0004 4144 0063 - Return Receipt Requested <br />