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.: ~ '~ <br />DIVISION OF MINERALS AND GEOLOGY <br />Depanmenl of Natural Resources <br />111 3 Sherman SI., Hoom ? 15 <br />Denver, Colorario 80?OJ <br />Phone U03) 86fi-35fi7 <br />FAX:11031832~BIOfi <br />May 23, 1997 <br />Curtis Bernhardt <br />Colina Oro Molino Inc <br />76 Beaver Street Suite 500 <br />New York, NY 10005 <br />r~r n -rr OF COLORADO <br />III IIIIIIIIIIIII III ~.~, <br />~~~~~~ <br />DEPARTMENT OI <br />NATURAL <br />RESOURCE <br />Ruy Ram¢r <br />Governor <br />tames 5 Luchhead <br />E.ecwivr Director <br />Michael 8. Long <br />Division Duector <br />RE: Colina Oro Molino Inc, Gold Hill Mill, Permit No. M-94-117 <br />Deaz Mr. Bernhardt: <br />On April 9, 1997 and May 6, 1997 we conducted inspections of your mine and found: <br />The approved spray evaporation and land application water management systems had not <br />been installed. <br />We believe this is in violation of: <br />The Colorado Mined Land Reclamation Act, C.R.S. 34-32-101 et sea. and specifically <br />C.R.S. 34-32-116(7)(8) and Rule 3.1.6(1) for failure to minimize disturbances to the <br />prevailing 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 during the mining <br />operation. <br />Therefore, we have found reason to believe a violation exists to Permit M-94-117 and the Law <br />and have scheduled this matter before the Mined Land Reclamation Board. <br />A Formal Public Hearing will be held during the June 25-26, 1997 Board meeting for <br />consideration of possible violation. The hearing will be held in Room 3l8 of 1313 Sherman <br />Street, Denver, Colorado, beginning at 9:00 a.m. or as soon thereafter as the matter can be <br />considered and you will have the opportunity to be represented and heard. <br />If the Board finds a violation at this hearing, it may issue a cease and desist order, assess a civil <br />penalty in the amount of 550.00 to $200.00 for each day of violation and may order the permit <br />be suspended, modified or revoked. In addition it may set the matter for consideration of <br />forfeiture of the $83,540.00 financial warranty at a subsequent hearing. If you have evidence <br />indicating that the possible violations noted above do not exist or have been corrected, please <br />provide it to us as soon as possible or bring it to the hearing. <br />