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~ STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources L\~ <br />1313 Sherman St., Room 215 C O L O RA D O <br />Denver, Colorado 80203 DIVISION O F <br />Phone: (303) 8663567 M I N F~, RA L S <br />FAX: (303) 832-8106 O~ <br />GEOLOGY <br /> AECLAMATION•N ININO <br />February 16, 2006 SAFETY•tOFNLE <br /> Bill Owals <br /> Gavemor <br />Charles E. Medina Russen George <br />USDA Forest Service, San Isabel National Forest Executive Dirrxtor <br />325 W. Rainbow Blvd. Rona1d`"~~'°"Y <br /> <br />Salida, CO 81201 Division Director <br />Natural Resource trustee <br />RE: Colorado Marble LLC, Lily Mines, Permit No. M-1987-028 <br />Conversion Application Ol (CN-Ol); Response to USFS Letter <br />Deaz Mr. Medina, <br />The Division of Minerals and Geology (DMG) received your letter of Febmary 3, 2006 regazding the <br />Lily Mines Conversion Application (CN-Ol), Permit No. M-1987-028. In the letter, the USFS <br />requests that the DMG not allow Colorado Marble Inc. to commence with the exploration and <br />production of the mineral materials located on National Forest System lands until adequate <br />environmental analysis is completed, and the Plan of Operation (POO) is approved. <br />Under the Memorandum of Understanding (MOU) between the USFS and DMG signed in 2004, the <br />Division is to recommend denial to the Mined Land Reclamation Boazd (MLRB) of any permit <br />application where the Forest Service has advised that the proposed operation would be in violation of <br />any applicable federal laws. Based on your letter, it appeazs that right now the applicant has not <br />obtained the necessary approvals from USFS to initiate the proposed mining operation. Mining may <br />not commence on USFS land until Colorado Marble obtains a POO for the Lily Mines. <br />Under Rule 6.4.14 of the Construction Materials Rules and Regulations, the operator is required to <br />provide the Division with its legal right to enter and initiate a mining operation on the affected land. <br />Colorado Mazble needs to secure approval from the USFS to initiate the proposed mining operation. <br />According to your letter, USFS' approval depends on many factors including that the operation <br />obtain approval of a POO. Until an approved POO is obtained and USFS otherwise authorizes the <br />proposed operation, the operator does not have the right to mine and reclaim on USFS land. <br />Accordingly, prior to the operator obtaining the necessary approvals from the USFS, the Division <br />would be required to recommend denial of the conversion application. <br />This matter is tentatively scheduled for the June 14-15, 2006 hearing before the Mined Land <br />Reclamation Board (and a Division's decision date set for May 19, 2006). If Colorado Mazble does <br />not obtain a POO prior to this date, the Division will recommend to the Boazd that the conversion <br />application be denied. However, in accordance with Rule 1.4.1(9), Colorado Mazble may extend the <br />review limo and the decision date reset not to exceed 365 days from the date the application was <br />filed. The additional time may be requested to allow the operator an opportunity to provide <br />information necessary to meet the adequacy requirements of the DMG. The Division will inform the <br />USFS if Colorado Marble extends the decision date. <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Survey <br />