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STATE ~ COLORADO <br />DIVISION OF MINERArS AND GEOLOGY <br />Ueparfinenf of Natural Resources <br />1313 Sherman St., Room 215 ~ <br /> <br />Denver, Colorado 80203 ~~~~~~~ <br />~ <br />Phone: 11031 A66-3567 <br />FAX: 13031 8.32-8106 <br />/ DEPARTMENT OF <br />'/ NI~TLJRAL <br />November 12, 1997 . <br />RESOURCES <br />Ms. Dorothy Blake / Ray Ramer <br />t.// <br />Blake Mining Co. Governor <br /> tames 5. Lachhe~d <br />P. ~. BOX 740 Executive Director <br />Nucla, CO 81424 Micnae~ a. ~°nR <br /> Division Director <br />(/ <br />RE: C-JD-S Mine, Permit No. M-77-248, Reason to Believe a Violation Exists <br />Dear Ms. Blake: <br />On June 30, 1997, the Division of Minerals and Geology conditionally approved a Transfer of Permit <br />and Succession of Operator for the C-JD-S Mine from Blake Mining Co., the current permittee, to <br />Telluride Mining Co., Inc., the applicant for the Succession of Operator. <br />As part of the Succession of Operator process, Telluride Mining Co. elected to have the Division staff <br />recalculate the required Financial Warranty amount prior to final approval of the permit transfer. This <br />is known as "Option A" on the Succession of Operator application form. The Financial Warranty <br />recalculation was completed by Division staff and sent to Telluride Mining Co. on June 30, 1997 as an <br />attachment to the Division's June 12, 1997 inspection report. The bond recalculation resulted in an <br />increase in the required Financial Warranty amount to $21,865.00, or $ 29,215.00 more than the existing <br />$2,650.00 Financial Warranty currently being held by the Division. The inspection report also <br />established a 60 day due date of Augus[ 31, 1997 for submittal of the increased financial warranty. <br />In addition, both the current pertttittee and successor applicant were notified by the Division of the <br />increased Financial Warranty submittal requirement in correspondence dated August 3, 1997. <br />On September 4, 1997, the Division received a request from Ms. Sue Carter of Telluride Mining Co. <br />fora 90-day extension to the August 31, 1997 Financial Warranty submittal due date. On September <br />9, 1997, the Division sent both Blake Mining Co. and Telluride Mining Co. Inc., a certified letter <br />granting a single 60-day extension to November 12, 1997 to comply with the increased Financial <br />Warranty requirement. As of this date, however, the increased Financial Warranty amount has not been <br />received by the Division. <br />We believe this to be a violation of Section 34-32-117(4) of the Colorado Mined Land Reclamation Act, <br />34-32-101 et. sec ., C.R.S. 1984 as Amended. <br />Therefore, we have found reason to believe a violation exists to Permit M-77-248 and the Law and have <br />scheduled this matter before the Mined Land Reclamation Board. <br />