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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 />July 10, 2013 <br />Anthony A. Blasi <br />Diamond B Enterprises, LLC <br />38043 CR 32.4 <br />Trinidad, CO 81082 <br />STATE OF COLORADO <br />COLORADO <br />D I V I S I ON 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 />Re: Diamond Rock Pit (Permit M- 2000 -047) Notice of Violation MV- 2013 -018, Civil Penalties, <br />and Cease and Desist Order, Failure to Pay Annual Fees & Submit Annual Reports for <br />2011, 2012 & 2013 <br />Dear Mr. Blasi: <br />C.R.S. 34- 32.5- 116(3)(a) and (b), 1989 Supp., and Permit No. M- 2000 -047 require you to submit to the <br />Division of Reclamation, Mining and Safety (the "Division ") $323.00 in annual fees and an annual report <br />on or before February 25 of each year. As of the date of this letter the Division has not received your <br />annual fees and reports for February 25, 2011, 2012 & 2013. Therefore, you are in violation of the above <br />cited statute and the provisions of Permit M- 2000 -047. Pursuant to C.R.S. 34- 32.5 -124, the Mined Land <br />Reclamation Board hereby assesses Notice of Violation MV- 2013 -018, Civil Penalties in the amount of <br />$323.00, and Order to Cease and Desist from ALL mining related activities associated with Permit No. <br />M- 2000 -047. <br />NOTE: NO PERMITS FOR NEW MINING OPERATIONS SHALL BE GRANTED TO ANY <br />OPERATOR WHO IS CURRENTLY FOUND TO BE IN VIOLATION IN THIS STATE (C.R.S. <br />34- 32.5 -120) UNTIL THE VIOLATION IS ABATED. The Annual Report and Fee requirement <br />will be considered submitted when we have received the following components: <br />1. APPROPRIATE ANNUAL FEE <br />2. COMPLETED REPORT <br />3. ASSOCIATED MAP <br />If you fail to comply with the above requirements, the Board Meeting for consideration of permit <br />revocation and forfeiture of the following warranty will be held on August 14`h, 2013 (or the following <br />day), in Room 318 of 1313 Sherman Street, Denver, Colorado, beginning at 9:00 a.m. or as soon <br />thereafter as the matter can be considered. <br />Bond TypeLsj I Bond Numbers Bond Amount (s) <br />LC <br />010603A <br />$16,000.00 <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />