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~iC T"t3 L~ r~, ~~, ~~~~~G ~, / STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY DepamneM of Natural Resources t 313 Sherman St, Room 21 s C O L O RA D O Denver, Colorado 80203 DIVISION O F Phone: (303) 866-3s67 M I N E RRA L S FAX: (3031832.8106 G E O L O G Y 0.ECLANATION•NININO SAFETT•ECIENCE rBl`li +D-W_E-16 W.cl,1.I. June 26, 2006 Russeu George ExL•Mive Director Ducommun Business Trust Ronald W. canary Attn: Dennis Ducommun Division Dinxtor 303 C.R. 520, P.O. Box 848 Natural Resource Tnrstee Fraser, CO 80442 RE: Reason to Believe a Violation Exists at the Alma Placer; DMG File # M-1985 2lti 9 Dear Mr. Ducommun: On June 2nd and 7th, 2006 the Division of Minerals and Geology conducted an inspection of the Alma Placer Mine located adjacent to the town of Alma, Colorado and found the following: A portable water pump was set up next to the Middle Fork of the North Fork of the South Platte River and was being used to pump water out of the river and into a pipeline extending onto the Alma Placer permit area for use in conducting gravel washing and processing. The pump was not within the approved affected area of the Alma Placer but was being used in support of the operation. This activity occurred in a portion of Section 12, Township 9 S, Range 78 W of the 6'" P.M. in Park County, Colorado. We believe that this is a violation of C.R.S. 34-32.5-I I6(4)(i) and Rule3.1.5(3) for failure to protect land outside of the affected area from damage occurring during the mining or reclamation operation. Therefore, we have reason to believe that a violation exists [o DMG File Number M-1985-029 and to [he Law, and have scheduled this matter to appear before the Mined Land Reclamation Board. A Formal Public Hearing will be held during the August l6`s and 17`s, 2006 Board Meeting for consideration of a possible violation. The hearing will be held at the Centennial Building which is located at 1313 Sherman Street, Room 318, Denver, Colorado, beginning at 10:00 a.m. on August 16th or as soon thereafter as the matter can be considered. At that hearing you will have the opportunity to be represented and heard. It will be reiterated that there is reason to believe that you are in violation of the provisions noted above. 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 amount of $ 100.00 to $1,000.00 for each day of violation. If you have evidence indicating that the possible violations noted above do not exist or have been corrected, please provide it to us as soon as possible or bring it to the hearing. Following [he hearing, all parties have an opportunity to review and comment on a draft of the Board's order before it becomes frnal. Ijyou wish to do so, you must provide the Board with a written request [o review the draft order prior to or at the time of your hearing, or you must inform the Board orally during [he hearing that you request to review the draft order. You must include your mailing address and, ifpossible, a fay number. You will be provided a copy of the draft order for your review as soon as it is available. The Board must receive your comments on the draft order within ten (/O) calendar days of the date the draft order is mailed, unless that deadline is extended. Please note that the Division of Minerals and Geoloev has reouested and will be allowed to review and comment on the draft Board Order prior to mailin tz o any Harty Submit all comments in writing to Mr. Tyson Powell, Assistant Attorney General, 1515 Sherman Street, S'" Floor, Denver, Colorado 80203, or FAX #(303) 866-5395. The Board will resolve arty issues regarding the form and substance of the order. This process does not aJfec[ your right [o request reconsideration by the Board or appeal the form or substance of the order. Office of Office of Colorado Mined Land Reclamation Active and Inactive Mines Geological Survey