SUMMARY OF MINUTES MINED LAND RECLAMATION BOARD MEETING. The Board granted the operator s request and waived the civil penalty.

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1 SUMMARY OF MINUTES MINED LAND RECLAMATION BOARD MEETING The Board Meeting was called to order on January 20, 2004, at approximately 10:00 a.m. at 1313 Sherman Street, Room 318, Denver, Colorado. The following members were present: Ira Paulin- Chairman, Harry Javernick, Catherine Kraeger-Rovey. (Bill Alt was present by telephone for Item 1 only.) Staff Presentation by Tawnya DeHerrera: 1. Formal Public Hearing MR. OTTO C. SHULTS File No. M Rd. Montrose, CO Rio Blanco County, Sec. 19, T1N, R93W, 6 th P.M., 9.80 acres, 110c sandstone; Otto Shults Home site. Consideration of the operator s request for reconsideration of the civil penalty assessed for failure to pay the annual fee and submit an annual report. The Board granted the operator s request and waived the civil penalty. Staff Presentation by Carl Mount for Russ Means: 2. Discussion Item HALDORSON AND SONS, INC. File No. M P. O. Box 1019 Montrose, CO Montrose County, Sec. 24S, T49N, R10W, 10 th P.M., surface 112c sand and gravel; Haldorson Sand and Gravel Mine site. Discussion of the operator s request for reconsideration and modification of the December 12, 2003 Board Order, due to possible new information submitted by the operator. The Board granted the operator s request for reconsideration and discussed how the rehearing would proceed. This hearing will be held during the February 25-26, 2004 Board meeting. file:///c /Inetpub/wwwroot/Colorado%20Division%20of%...ning%20and%20Safety%20Website/Summaries/jan04sum.htm (1 of 8)8/25/ :54:22 PM

2 Staff Presentation by James Dillie: 3. Formal Public Hearing SANBORN SAND AND GRAVEL, INC. File No. M Platte Dr. Fairplay, CO Park County, Sec. 29, T9S, R77W, 6 th P.M., 19 acres, 112 surface sand and gravel; Gloria Z Mine site. Consideration of a possible notice of violation, cease and desist order, corrective actions and civil penalties for mining without a permit OR failure to protect areas outside of the affected land from damage occurring during the mining operation. The Board followed the Staff s recommendation and found the operator in violation for operating without a permit, issued a cease and desist order to prevent any additional activities from occurring outside the currently approved permit boundary, except for reclamation, required the operator to submit a complete amendment application to incorporate at least all of the disturbed areas that lie outside the currently approved permit boundary by March 21, 2004 and obtain approval of the amendment application within 90 days, but no later than June 19, 2004 and required the operator to post an interim increase in the current reclamation bond in the amount of $11,500 by March 22, The Board assessed a civil penalty in the amount of $53, with all but $3, to be suspended if the deadlines and corrective actions are met. The $3, includes $1, based on the 30 hours of staff time at $56.64 per hour. 4. Formal Public Hearing J & M Mining Co. File No. M Box Como, CO Park County, Sec. 20, T8S, R76W, 6 th P.M., 120 acres, 112 surface gold placer; Terryall Creek Mine site. Reconsideration of a previous permit application approval where the financial warranty was not submitted within 365 days of application approval. file:///c /Inetpub/wwwroot/Colorado%20Division%20of%...ning%20and%20Safety%20Website/Summaries/jan04sum.htm (2 of 8)8/25/ :54:22 PM

3 The Board followed the Staff s recommendation and denied the application and terminated the file. 5. Formal Public Hearing COUNTRYSIDE DEVELOPMENTS, INC. P. O. Box 2251 Littleton, CO File No. M Park County, Sec. 26, T9S, R77W, 6 th P.M., 9.9 acres, 110 gold placer; Jeannie Ann Mine site. Reconsideration of a previous permit application approval where the financial warranty was not submitted within 365 days of the application approval. The Board followed the Staff s recommendation and denied the application and terminated the file. Staff Presentation by Tony Waldron: 6. Formal Public Hearing ELBERT COUNTY ROAD AND BRIDGE File No. M ATTN: Mr. Tim Sheridan 809 Ute Ave. Simla, CO Elbert County, Sec. 1, T11S, R58W, 6 th P.M., 9.9 acres, 110 surface gravel; Kochis Pit site. Consideration of the operator s appeal of the Division s decision to deny a full performance warranty release request. The Board granted the operator s request and authorized the full release of the performance warranty, with the provision that the county will monitor and spray for noxious weeds for four years. 7. Formal Public Hearing DENVER WATER File No. M W. 12 th Ave. Denver, CO Adams County, Sec. 3, T2N, R67W, 6 th P.M., 111 acres, 112 sand and gravel; Reclamation Pit No. 1 site. Consideration of a possible notice of violation, cease and desist order, corrective actions and civil penalties for failure to follow the approved reclamation plan and failure to minimize disturbance to the prevailing hydrologic balance. file:///c /Inetpub/wwwroot/Colorado%20Division%20of%...ning%20and%20Safety%20Website/Summaries/jan04sum.htm (3 of 8)8/25/ :54:22 PM

4 The Board followed the Staff s recommendation and found the operator in violation for failure to follow the approved reclamation plan and for failure to minimize damage to the prevailing hydrologic balance of the affected land and the surrounding area and to the quality and quantity of water in the surface and groundwater systems during mining and reclamation operations. The Board ordered the operator to submit an amendment to the permit application by February 26, 2004, which includes, at a minimum, the following elements: changes to the reclamation plan and the post-mining land use; incorporate slurry wall and French drain into mining and reclamation plans; provide a complete analysis of potential impacts to the hydrologic balance of the surrounding area; modify other items as needed (i.e., slope, postmining topography, seed mix, reclamation plan). The amendment must be submitted by no later than February 26, 2004, and approved no later than June 25, The Board assessed a civil penalty in the amount of $3,400, with all but $1,000 to be suspended, if the corrective actions are completed in a timely manner. 8. Formal Public Hearing DENVER WATER File No. M W. 12 th Ave. Denver, CO Adams County, Sec. 3, T2N, R67W, 6 th P.M., 6 acres, possible illegal sand and gravel; Reclamation Pit No. 1 site. Consideration of a possible notice of violation, cease and desist order, corrective actions and civil penalties for failure to obtain a reclamation permit prior to engaging in a new mining operation. The Board followed the Staff s recommendation and found the operator in violation for failure to obtain a reclamation permit prior to engaging in a new mining operation, ordered the operator and/or landowner to secure an approved Construction Material (110) or (112) Extraction permit by submitting an application by February 26, 2004, and obtaining approval by no later than June 25, The Board assessed a civil penalty in the amount of $35,699.20, with all but $5, suspended, if the corrective actions are completed in a timely manner. file:///c /Inetpub/wwwroot/Colorado%20Division%20of%...ning%20and%20Safety%20Website/Summaries/jan04sum.htm (4 of 8)8/25/ :54:22 PM

5 9. Formal Public Hearing ENVIROCON, INC. File No. M Corporate Circle, Ste. 114 Golden, CO Adams County, Sec. 3, T2N, R67W, 6 th P.M., 6 acres, possible illegal sand and gravel; Reclamation Pit No. 1 site. Consideration of a possible notice of violation, cease and desist order, corrective actions and civil penalties for failure to obtain a reclamation permit prior to engaging in a new mining operation. The Board found that the operator was not violation. 10. Formal Public Hearing SUBURBAN SAND AND GRAVEL File No. M Fenton St. Denver, CO Adams County, Sec. 3, T2N, R67W, 6 th P.M., 125 acres, 112 sand and gravel; Road Runners Rest II site. Consideration of a possible notice of violation, cease and desist order, corrective actions and civil penalties for failure to follow the approved reclamation plan and failure to minimize disturbance to the prevailing hydrologic balance. The Board found the operator in violation for failure to follow the approved reclamation plan and for failure to minimize damage to the prevailing hydrologic balance of the affected land and the surrounding area and to the quality and quantity of water in the surface and groundwater systems during mining and reclamation operations, ordered the operator to submit an amendment to the permit application by February 26, 2004, which includes, at a minimum, the following elements: changes to the reclamation plan and the post-mining land use; incorporate slurry wall and French drain into mining and reclamation plans; provide a complete analysis of potential impacts to the hydrologic balance of the surrounding area; modify other items as needed (i.e., slope, post-mining topography, seed mix, reclamation plan). The amendment must be submitted by no later than February 26, 2004, and approved no later than June 25, The Board assessed a civil penalty of $3,400 with all but $500 suspended if the corrective actions are met in a timely manner. 11. Formal Public Hearing DENVER WATER File No. M W. 12 th Ave. file:///c /Inetpub/wwwroot/Colorado%20Division%20of%...ning%20and%20Safety%20Website/Summaries/jan04sum.htm (5 of 8)8/25/ :54:22 PM

6 Denver, CO Adams County, Sec. 3, T2N, R67W, 6 th P.M., 25 acres, 112 sand and gravel; Henderson Industrial Pit site. Consideration of a possible notice of violation, cease and desist order, corrective actions and civil penalties for failure to follow the approved reclamation plan and failure to minimize disturbance to the prevailing hydrologic balance. The Board followed the Staff s recommendation and found the operator in violation for failure to follow the approved reclamation plan and for failure to minimize damage to the prevailing hydrologic balance of the affected land and the surrounding area and to the quality and quantity of water in the surface and groundwater systems during mining and reclamation operations. The Board ordered the operator to submit an amendment to the permit application by February 26, 2004, which includes, at a minimum: changes to the reclamation plan and the post-mining land use; incorporate slurry wall and French drain into mining and reclamation plans; provide a complete analysis of potential impacts to the hydrologic balance of the surrounding area; modify other items as needed (i.e., slope, post-mining topography, seed mix, reclamation plan). The amendment must be submitted by no later than February 26, 2004, and approved no later than June 25, The Board assessed a civil penalty of $3,400, with all but $1,000 to be suspended, if the corrective actions are completed in a timely manner. Staff Presentation by Tom Schreiner: 12. Formal Public Hearing FIXLER COLORADO CORPORATION File No. M Mr. Lowell S. Fixler 400 Skokie Blvd., Ste. 590 Northbrook, IL Routt County, Sec. 17, T5N, R84W, 6 th P.M., acres, 112c surface sand and gravel; Grouse Lake site. Consideration of the withdrawal of the permit file because the status has been awaiting warranty since file. The Board followed the Staff s recommendation and terminated the permit and closed the 15. Approval of Summary of December 2003 Minutes: The December 2003 Minutes were file:///c /Inetpub/wwwroot/Colorado%20Division%20of%...ning%20and%20Safety%20Website/Summaries/jan04sum.htm (6 of 8)8/25/ :54:22 PM

7 approved as submitted. 16. Continuances and Withdrawals: The Continues and Withdrawals were approved as submitted. 17. EDO Report: (No report was given at this time.) Director s Report: a) Greg Walcher: Mr. Cattany invited the Board members to a reception for Greg Walcher. b) Russell George: Mr. Cattany said the confirmation hearing of Mr. George as DNR s new Executive Director occurred on January 20, c) Staffing Changes: Mr. Cattany updated the Board on several staffing changes within the Department. d) Federal Legislation: Mr. Cattany reported on the AML coal fee and the new legislation being proposed. He also reported on three bills dealing with Good Samaritan legislation. e) National Mining Association (NMA): Mr. Cattany said the NMA has withdrawn the $50,000 they committed as part of the Milsap Creek Project. f) Cyanide Bans: Mr. Cattany said there will be no legislation or ballot initiative this session to ban the use of cyanide at mining sites in Colorado, because the opponents want to discuss the issues county-by-county. g) Colorado Geological Survey (CGS): Mr. Cattany said the Governor is opposed to a bill to move the CGS to the Colorado School of Mines. h) Core Mission Project: Mr. Cattany said Mr. George has directed him to move forward with investment and savings ideas that had been agreed upon. He said that no revenue issues would be pursued. i) Royalty Policy Committee: Mr. Cattany said a few changes had been proposed for this committee in terms of the appointment process. He said that they anticipate having one Royalty Policy Committee meeting this year. j) Merger of DNR Divisions: Mr. Cattany said Mr. George is in the process of file:///c /Inetpub/wwwroot/Colorado%20Division%20of%...ning%20and%20Safety%20Website/Summaries/jan04sum.htm (7 of 8)8/25/ :54:22 PM

8 AGO Report: determining whether he wants to move forward this session with the merger of the DMG and the Oil and Gas Conservation Commission. k) Yule Marble: Mr. Cattany said there is bill to make Yule Marble the state rock. jan04sum a) Line Camp Litigation: Mr. Powell updated the Board on the status of the litigation with Marilyn Boynton. file:///c /Inetpub/wwwroot/Colorado%20Division%20of%...ning%20and%20Safety%20Website/Summaries/jan04sum.htm (8 of 8)8/25/ :54:22 PM

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