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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />7373 Sherman St., Room 275 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8706 <br />September 20, 2004 <br />Mr. Brice F. Lee <br />Brice F Lee & Phyllis J Lee <br />COLORADO <br />DIVISION O F <br />MIN SRALS <br />GEOLOGY <br />RECIAMATION•MIN ING <br />SAf ETY•SCIEN<E <br />Bill Owens <br />Governor <br />Russell George <br />Executive Director <br />940 CR 119 Ronald W. Cattany <br />Hesperus, CO 81326 Division Director <br />Natural Resource TTUStee <br />Re: Horvath Pit No 1, Permit No. M-1977-546, Annual Fee and Report, Notice of Violation No. MV-2004- <br />052, Civil Penalties, and Cease and Desist Order <br />Dear Mr. Lee: <br />C.R.S. 34-32.5-116(3)(a) and (b), 1989 Supp. And Pemlit No. M-1977-546 require you to submit to the Division of <br />Minerals and Geology $281.00 in annual fees and annual report on or before July 26, 2004 of each yeaz. As of the <br />date of this letter the Division has not received your annual fees and report for July 26, 2004. Therefore, you are in <br />violation ofthe above cited statute and the provisions ofPermit No. M-1977-546. Pursuant to C.R.S. 34-32.5-124 the <br />Mined Land Reclamation Boazd hereby assesses Notice of Violation No. MV-2004-052, Civil Penalties in the amount <br />of $281.00, and Notice and Order to Cease and Desist from ALL mining related activities associated with Permit No. <br />M-1977-546. <br />NOTE: NO PERMITS FOR NEW MINING OPERATIONS SHALL BE GRANTED TO ANY OPERATOR <br />WHO TS CURRENTLY FOUND TO BE IN VIOLATION IN THIS STATE (C.RS. 34-32.5-120) UNTIL THE <br />VIOLATION IS ABATED. <br />If you fail to submit your annual fee, annual report, and the Civil Penalties assessed by October 15, 2004, this matter <br />will be heard at a Formal Public Hearing before the Mined Land Reclamation Boazd for consideration of permit <br />revocation and forfeiture of the following warranty(ies) at the October 27, 2004 (or the following day) Boazd <br />Meeting: <br />Bond Tvoe(s) Bond Number(s) Bond Amount(s) <br />LC 376 $2,888.00 <br />If you submit all past due annual fees, reports, and the Civil Penalties by October 15, 2004, this matter will be <br />withdrawn from further Boazd consideration. <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geoloeical Survev <br />