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DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />'August 10, 2011 <br />fr. Pablo Vasquez <br />,/Bad Boy Stone <br />P.O. Box 946 <br />Lyons, CO 80540 <br />Dear Mr. Vasquez: <br />Bond Type(s) <br />Office of <br />Mined Land Reclamation <br />STATE OF COLORADO <br />Re: Bad Boy Stone, Permit No. M-1992-108, Annual Fee and Report, <br />Notice of Violation No. MV- -2011 -017, Civil Penalties, and Cease and Desist Order <br />CD <br /> $1,400.00 <br />MdC, <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />— &— <br />SAE ETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pitieda <br />Director <br />C.R.S. 34- 32.5- 116(3)(a) and (b), 1989 Supp. And Permit No. M- 1992 -108 require you to submit to the Division of <br />Reclamation, Mining and Safety (the "Division ") $323.00 in annual fees and annual report on or before February 3 <br />of each year. As of the date of this letter the Division has not received your annual fees and report for February 3, <br />2011. Therefore, you are in violation of the above cited statute and the provisions of Permit No. M- 1992 -108. <br />Pursuant to C.R.S. 34- 32.5 -124 the Mined Land Reclamation Board hereby assesses Notice of Violation No. MV- <br />2011 -017, Civil Penalties in the amount of $323.00, and Notice and Order to Cease and Desist from ALL mining <br />related activities associated with Permit No. M- 1992 -108. <br />NOTE: NO PERMITS FOR NEW MINING OPERATIONS SHALL BE GRANTED TO ANY OPERATOR <br />WHO IS CURRENTLY FOUND TO BE IN VIOLATION IN THIS STATE (C.R.S. 34- 32.5 -120) UNTIL THE <br />VIOLATION IS ABATED. The Annual Report and Fee requirement is not met until we have received the <br />following components: fee, report, and associated map. If no new disturbances or reclamation have occurred during <br />the previous year and no new changes to the previous year's map are necessary, then no new map is required, provided <br />that the Operator shall state this in the Annual Report. <br />If you fail to submit your annual fee, annual report, and the Civil Penalties assessed by October 9, 2011, this matter <br />will be heard at a Formal Public Hearing before the Mined Land Reclamation Board for consideration of permit <br />revocation and forfeiture of the following warranty(ies) at the September 14, 20,11 (or the following day) Board <br />Meeting: <br />Bond Number(s) Bond Amount(s) <br />If you submit all past due annual fees, reports, and the Civil Penalties by October 9, 2011, this matter will be <br />withdrawn from further Board consideration. <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />