F I LED - Utah · PDF filef i led apr t 5 2013 secretary, board of oil, ... board of oil, gas & mining ... permit number: m0470079

Cameron Johnson (13996) Steven F. Alder (0033) Assistant Attorneys General JOHN E. SWALLOW (5802) UTAH ATTORNEY GENERAL 1594 West North Temple, Suite 300 Salt Lake City, Utah 84116 Telephone: (801) 538-7227 Counsel for the Division of Oil, Gas, and Mining

F I LED APR t 5 2013

SECRETARY, BOARD OF OIl, GAS & MINING

BEFORE THE BOARD OF OIL, GAS, AND MINING DEPARTMENT OF NATURAL RESOURCES

IN AND FOR THE STATE OF UTAH

00000

IN THE MATTER OF THE PETITION BY THE DIVISION OF OIL, GAS & MINING FOR AN ORDER AGAINST UNITED STONE & DESIGN, INC.:

(1) WITHDRAWING OF THE PETITIONER'S EXHIBITS UNITED STONE MINE'S, S/047/0079, NOTICE OF INTENTION TO COMMENCE DOCKET NO.: 2013-008 SMALL MINING OPERATIONS; CAUSE NO.: S/047/0079

(2) FORFEITING THE SURETY; (3) DIRECTING THE DIVISION TO

COMPLETE RECLAMATION, AND AUTHORIZING A CIVIL SUIT TO RECOVER COSTS AND PENALITIES FROM UNITED STONE & DESIGN, INC. AND THE UNITED STONE MINE, S/04 7/0079; AND

(4) TAKING ALL OTHER ACTIONS NECESSARY TO RECLAIM THE LANDS LOCATED AT S27, T12S,R20E;S29,T12S,R20E; AND S06, T13S, R20E, USBM, UINTAH COUNTY, UTAH

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00000

Pursuant to Utah Admin. Code Rule R641-1-5-500, Petitioner Utah Division of Oil, Gas

& Mining ("Division"), by and through its counsel of record, the Utah Attorney General's

Office, hereby respectfully submits the following exhibits intended to be offered into evidence in

support of its Notice of Agency Action ("NOAA") at the April 24, 2013 hearing on this cause:

EXHIBIT" A"

EXHIBIT "B"

EXHIBIT "C"

EXHIBIT "D"

EXHIBIT "E"

EXHIBIT "F"

EXHIBIT "G"

EXHIBIT "H"

EXHIBIT "I"

Cessation Order MC2006-03-07-01 (3 pages)

Letter from the Division to the Operator regarding the deficient Nor and surety amount (2 pages)

Letter from the Division regarding the Operator's deficient bond and need reclamation contract (1 page)

United Stone's Reclamation Contract (11 pages)

Letter from the Division outlining the payment schedule for the reclamation surety (3 page)

May 21, 2007 letter from the Division approving the Operator's Nor (8 pages)

November 20,2007 Division letter demanding payment of the outstanding surety amount from the Operator (1 page)

December 28, 2007 Division response to the Operator's emails concerning surety payments (1 page)

January 8, 2008 letter from the Division revoking authorization to conduct mining activities at the United Mine and requiring reclamation by June 1, 2008 (1 page)

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EXHIBIT "J"

EXHIBIT "K"

EXHIBIT "L"

EXHIBIT "M"

~ Dated this Ji. day of April, 20l3.

Cessation Order MC2008-59-01 (l page)

Jully 22,2008 Division's proposed assessment for Cessation Order MC-2008-59-01 (6 pages)

Cessation Order MC2008-59-02 and November 13, 2008 letter withdrawing United Stone's NOI (3 pages)

October 20, 2009 Finalized Assessment for Failure to Abate Cessation Order MC2008-59-02 (2 pages)

Assistant Attorney General

Counsel for Division of Oil, Gas, and Mining

1549 West North Temple, Suite 300

Salt Lake City, Utah 84114-5801

Telephone: (801) 538-7227

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CERTIFICATE OF MAILING

I hereby certify that I caused a true and correct copy of the forgoing PETITIONER'S EXHIBITS to be personally served or mailed first class mail, postage prepaid, the {CoO t.1-.. day of April, 2013, to:

UNITED STONE AND DESIGN

C/O JUSTIN FARLEY

P.O. BOX 99

DUCHESNE, UT 84021

ZIONS BANK

ATTN: RAEL YNN DANIELS

ONE SOUTH MAIN ST

SALT LAKE CITY, UTAH 84133

MIKE JOHNSON

ASSISTANT ATTORNEY GENERAL

DEPARTMENT OF NATURAL RESOURCES

BOARD OF OIL, GAS & MINING

[VIA EMAIL]

4

EXHIBIT A

06282006.pdf https:llfs.ogm.utah.gov/FILES/MINERALS/PERMITS/047 IS04 7007 ...

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JON M. HUNTSMAN, JR. Gover/lOr

GARY R. HERBERT lieu/etlant GO\'er,wl'

~ of Utah DEPARTMENT OF NATURAL RESOURCES Division of Oil, Gas & Mining

MICHAEL R. STYLER Execur;vl' Din'ernf

IOII!'l R. BAZA Uil'i.fton Dira/or

Notice of Violation 0 No. _______ _ Cessation Order [g! No. MC2006-03-07-01

CERTIFIED RETURN RECEIPT # 700.6 6510cVO 3 ??&()'J. Lj:Jl./g

To the following Permittee or Operator:

Page I of::.3 __ _

Pennittee/Operator Nflrt1e :,..:,U~n.i!i~te~d~S~t~o!,!;nt,;~· ~81,-!:ld~D;::;e.:!.'si!!'og~Il _ ________ ____________ _

Mine Name: United Stone ~ Surtace 0 Underground 0 Other

County: Uil1tah State: ;U,-"ta""h~ ___ _ Telephone Number: 435-738-2366

Business Address: P. O. Box 909. Duchesne, Utah 84021

Permit Number: M0470079 (Unpermitted)

Ownership Category: 0 State

Date of Inspection: June 28, 2006

DBLM o USFS

Time: 5: 15

(gI Fcc 0 Other

o a.m. ~ p.m. to 6:45 0 a.m . [8J p.m.

Under authority of the Utah Mined Land Reclamation Act, Section 40-8-1 ei seq., Inll ode A III/Olllled, 1953, the undersigned authorized representative onhe Division of Oil, Gas, and Mining has conducted all inspeclion of above mine on above date and has fOlmd that a Notice of Violation or Cessation Order must be i sued wirb respect 10 th conditions, practices, or violations listed. In accordance with Section 40-8-9, Uta" Code AllIlOt(lted. you arc ordered to cease immediately the operations or activity described and to perfoml the required aclions described within the designated time for abatement.

TIle undersigned representative finds that this order [2J docs require cessation of all mining;

D does 1101 require cessation of all mining. For this purpose, "mining" means development ot: or extraction of a mineral deposil, including transportation within or from the mine site, concentrating, milling, evaporation, or other proc ssing. Mining andfor reclamation operations not directly the subject of this order shall c.ontinue while this order is in eITcc\. Y 1I (U re 'ponsihle for doing all work in a safe and workmanlike malUler.

This order shall remain in cfl'ect until it is modified, termimlled or vacated by written notice of an authorized representative . of the director of the Division of Oil, Gas, and Mining.

Date of service 1m ailing: _______ _ Time or service/mailing _______ 0 a.m. 0 p.m.

Justin Farley Permittee or Operator Representative Title

Signature

ReclamaJion Biol_qliliL-_ _______ _

Title

Signature

, 1594 V.SEII!9!ftID.vJERSl!eSIIJEl'0 IIc'x 145~lIl. Sail Lake Cil)" UT 8411~ 5001 lelephone (801) 53H·5340 • facsiJllile (~,JI! Viq·3940· TTY (8011 538 745~ • h'lI'lU'~111 u!lIh,gul'

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IMPORTANT - READ CAREFULLY

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1. PENALTIES. a, Proposed assessment. The Division of Oil, Gas, and Mining (DOGM) assesses fines based upon a proposed assessment recommended by an assessment officer. You may submit written information pertaining to violation(s) covered by this order within 15 days of the date this notice or order is served on you or your agent. Information will be used by the assessment officer in determining facts surrounding the violation(s) and amount of penalty. A representative of the DOGM will serve the proposed assessment on you or your agent within 30 days of issuance of notice or order .

b. Assessment. The penalty will be final unless you or your agent file a written request within 15 days of receipt of proposed assessment for an informal hearing before the assessment officer,

For each violation included in this notice, a penalty of up to $5,000 may be assessed for each separate day the violation continues.

If you fail to abate any violation within the time set for abatement or for meeting any interim step, you will be assessed an additional minimum penalty of$750 for each day of continuing violation beyond the time set for abatement. In addition, if you fail to abate any violation as required you will be issued a Cessation Order requiring you to cease mining operations on the pOl1ion of the operations relevant to the violation.

2. STOP WORK CONFERENCE. A Stop Work Conference may be requested if this notice requires cessation of all mining. On the reverse of this page, the authorized representative has made a finding as to whether or not this notice requires cessation of all mining. (See Utah Admin. R647-6-102.4 ct seq.)

You must request the Stop Work Conference within 30 days after service of this Cessation Order. The conference must be held within 5 days of your request. You will be notified of the date, time, and location of the conference.

https:llfs.ogm.utah.gov/FlLES/MINERALS/PERMITS/047/S047007 ...

Please send your conference request to: Administrative Secretary Associate Director of Mining 1594 West North Temple, Suite 1210 PO Box 14580 I Sal! Lake City, Utah 84114-5801

3. FORMAL REVIEW AND TEMPORARY RELIEF.

You may apply for review of this notice, order or proposed assessment before the Board of Oil, Gas, and Mining by submitting an application for hearing within 30 days of receipt of notice or assessment by you or your agent. Apply to:

Secretary Board of Oil, Gas, and Mining 1594 West North Temple, Suite 1210 PO Box 145801 Salt Lake City, Utah 84114-5801

If applying for a formal board hearing, you may submit with your petition for review a request for temporary relief from this notice. Procedures for obtaining a formal board hearing are contained in the board's Rules of Practice and Procedure and in Utah Admin. R. 647-5 et seq.

4. INDIVIDUAL CIVIL PENALTIES. An additional individual civil penalty of up to $5000 prr day may be assessed against any corporate director, officer, or agent who knowingly and willfully authorized, ordered or carried out a violation or who faits or refuses to comply with an order.

For fllrthcr information, consult Utah Code ,4l11lOlaled Section 40-8-9, 9.1, Utah Admin . R. 647-6, 7, 8 seq. or contact the Division of Oil, Gas, and Mining at (801) 538-5304.

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Notice of Violation I Cessation Order NO.

Violation No. _I _ of_l __ Page_3 __ 00.

Nature of condition, practice, or violation:

Conducting mining operations without first filling II Notice of Intention (0 ommence Small Minim! Operations or a

Notice oflntention to Commence Large or Small Mining Operations.

Failure to file and gain approval of II reclamation surety prior to beginning mining operations.

Provisions of act, regulations, or permit violated:

R647-3-JOI or R647-4-IOI; UCA 40-8-7(1)((1); UeA 40-8-7(J)(c)

(Check box if appropriate:) ..x. Condition, practice, or violation is creating an imminent danger to health or safety of the public . ..x. Pennittee/Operator islhas been conducting mining activities without a permit. ..x. Condition, practice, or violation is causing or can reasonably be expected to cause significant, imminent

environmental harm to land, air, or water resources. Pennittee or Operator has failed to abate Violation(s) No. included in Notice of Violation No. or Cessation Order No. M within time for abatement originally fixed or subsequently extended.

Mining activity to be ceased immediately:

All mining activity must cease.

Affinnative obJigation(s) or required action and abatement time (if applicable):

By July 17, 2006. submit. as appropriate. a complete Notice ofIntention to Commence Small or Large Mining

Operations. After the notice is determined complete. and n later thun Augu 17. 2006. submit a re lamation

surety, reclamation contract, and anv other necessary form s to put the S\lrely inlo effect.

jb cc: Justin Farle),. United Stone

File O :\M04 7 -lJin!ah~'S04 70079-UnitedStollcldrat\\mc200603070 I.doc

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EXHIBITB

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State of Utah

Department of Natural Resources

MICHAEL R. STYLER Execll/il'f Direc/or

Division of Oil, Gas & Mining

JOHN R. BAZA DivisiolJ IJirec/or

JON M. HUNTSMAN. JR. Gm'rnlOr

GARY R. HERBERT Lieu/erwlII Governor

CERTfFIED RETURN RECEIPT 7004 25100004 18244073

Justin Farley United Stone and Design P.O. Box 909 Duchesne, Utah 84021

• October 6, 2006

Subject: Deficient Notice of Intention to Commence Small Mining Operations; United Stone and Design; United Stone and Design Mine; M0470079; Tasks 1450, 1501, and 1544; Uintah County, Utah

Dear Mr. Farley:

On September 7,2006, the Division received your FAX response to the Division 's August 15,2006, deficiency letter concerning the referenced Notice of Intention to Commence Small Mining Operations. The response says the maps were being mailed, but thc Division has not received them. We have discussed this with you by telephone and have left several messages advising you of the need to submit the maps and to contact this office.

The reclamation surety required for the mine is $12,000.00. Although we have communicated this to you verbally, this letter serves as a formal notification of the surety amount. The surety can be submitted in the form of cash (certified funds), a certificate of deposit, a letter of credit, or a corporate surety. The Division also needs a completed reclamation contract. Please contact Beth Ericksen, bonding coordinator, at 801-538-5318 or [email protected] for infonnation about submitting the surety and the reclamation contract.

The Division is extending the abatement deadline for cessation order MC2006-03-07 -01 until October 16, 2006. Without adequate justification, the deadline will not be extended further. Failure to abate the cessation order in the specified time period may result in issuance of a new cessation order for failing to abate the first. Please not that a "failure to abate cessation order" carries a fine of $750.00 per day.

1594 West Nonh Temple. Suite 1210. PO Box 145MOI. Salt Lakt· ('iI\', UT ~~ I 14·51101 telephone (801) 538-5340' racsimilc (HO 1) 1-'9-.1940' Try (SO 1) ,JR- 145M. \I'I<'II'.ognr./l/llh.K(/\·

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JustinF~ Page 2 of2 M0470079 October 6,2006

• If you have questions about these requirements, please contact Paul Baker

at 801-538-5261 or me at 801-538-5325.

Sincerely,

~~~.~ Pennit Supervisor Minerals Regulatory Program

DRH:PBB:pb Enclosure: Modification to CO MC2006-03-07-01 P: IGROU P S\M IN ERALS\ WP\M04 7 -U intahlS04 70079-UnitedStonelfinalldef-1 0062006.doc

,

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EXHIBITC

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State of Utah

Department of Natural Resources

MICHAEL R. STYLER Executive /Jirector

Division of Oil, Gas & Mining

JOHNR. BAZA Division Direttor

JON M. HUNTSMAN. JR. Go\'e n w r

GARY R. HERHEKT tiellrelllmr (Jove rnor

Mr. Justin Farley, contact for

United Stone & Design, Inc. Post Office 909 Duchesne, Utah 84021

March 7, 2007

Subject : Defici Ilt R eclamation onlract and Surely Requirements. United Stone & Design, Inc., Unpermitted-United Stone, S/047/079, Uintah County, Utah

Dear Mr. Farley:

The Division recently received a certificate of liability insurance copy issued by Service Insurance Agency, Inc . The contents of the certificate identify there is a reclamation bond, policy number , . Although the Division appreciates your effort in obtaining the reclamation surety bond, the certificate will not meet approval requirements. The Division requires the original executed surety reclamation bond. Please provide this executed document to the Division immediately.

In addition, a reclamation contract is required and is attached for your completion . It must be signed and notarized and returned to the Division complete and in its original fonn.

Please provide all requested documents immediately. If you have any questions or require assistance. please contact Surety Coordinator, Beth Ericksen (801) 538-5318 . Thank you in advance for your prompt attention to this important permitting requirement.

SMW:BE:be

Sincerely

Susan M. White Mine Program Coordinator Minerals Regulatory Program

Enc: small mine reclamation contract, partially completed cc: Beth Ericksen, DOG;"'!

Paul Baker, DOGM I' \0 KOlJ PS\M IN ERA LS\WP\M04 7 -llintah\S04 70079-1 JnilcdSlone\final~ uSlinfarlcysuretyde ficient doc

1594 West North Tempic. Suite 1210. PO Box 145801, 5"IIl;tke City, UT R4 I I ~-5801 telephone (801) 538-5340' facsimile (Hili I J'w-J941l' TTY (!lOI) .5:lX-745R • Itwlt·.(I/fnwllIlt/ffll '

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EXHIBIT D

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, https:llfs.ogm .utah.gov/FILES/MINERALS/PERMITS/047/S047007 ...

? i (I I t' 0(; , ~JI' fl. ,. .

FORM MR-RC (SMO) Revised August 9, 2006 RECLAMATION CONTRACT

Mine Name: United Stone-unpermitted

Other Agency File Number ___ _

STATE OF UTAH DEPARTMENT OF NATURAL RESOURCES

DIVISION of OIL, GAS and MINING 1594 West North Temple, Suite 1210

Box 145801 Salt Lake City, Utah 84114-5801

(801) 538-5291 Fax: (801) 359-3940

---00000---

SMALL MINE RECLAMATION CONTRACT

This Reclamation Contract (hereinafter referred to as "Contract") is entered into between United Stone & Design, Inc. the "Operator" and the Utah State Division of Oil, Gas and Mining ("Division").

WHEREAS, Operator desires to conduct mining operations under Notice of Intention (NOI) File No. SI0471079 which the Operator has filed with the Division and has been determined by the Division to be complete (Complete NOI) as required by the Utah Mined Land Reclamation Act, Sections 40-8-1 et seq., Utah Code Annotated, (2005, as amended) (hereinafter referred to as "Act") and the regulations adopted pursuant to the Act; and

WHEREAS, Operator is obligated to reclaim the lands affected by the mining operations in accordance with the Act and the regulations, and is obligated to provide a surety in a form and amount approved by the Division or the Board of Oil, Gas and Mining (Board) to assure reclamation of the lands affected by the mining operations.

NOW, THEREFORE, the Division and the Operator agree as follows:

1. Operator agrees to promptly reclaim in accordance with the requirements of the Act and applicable regulations, as they may be amended, all of the lands affected by the mining operations conducted or to be conducted pursuant to a Complete Notice of Intention.

2. The Lands Affected by the mining operations and su~ tnf~ re~~irements of the Act and this Contract include: lYJ IAltf1UW~@w~@

A. All surface and subsurface areas affected or to be affected by the mining operations including but not limited to private onsite ways, roads, railroads; land excavations; drill sites and

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workings; refuse banks or spoil piles; evaporation or settling ponds; stockpiles; leaching dumps; placer areas; tailings ponds or dumps; work, parking, storage, and waste discharge areas, structures, and facilities; and

B. All mining disturbances regardless of discrepancies in the map and legal description, unless explicitly and clearly identified as EXCLUDED on maps, and legal descriptions included in the Complete NOI; provided lands may be excluded only if: (1) they were disturbed by mining operations that ceased prior to July 1, 1977; (2) the lands would be included but have been reclaimed in accordance with a complete notice or reclamation plan; or (3) the lands were disturbed by a prior operation for which there is no surety, no legally responsible entity or person, and which lands are not necessarily or incidentally intended to be affected by the mining operations as described in the Complete NOI.

3. The Operator shall be responsible for reclamation of all such Lands Affected regardless of errors or discrepancies in the maps or legal descriptions provided with the NOI. which are intended to assist in determining the location of the mining operations, to describe the areas of disturbance, and to assist estimating the amount of surety required.

4. The Operator prior to commencement of any mining operations and as a precondition to the rights under the Notice of Intention shall provide a surety in a form permitted by the Act and in an amount sufficient to assure that reclamation of the Lands Affected will be completed as required by the Act. The Surety shall remain in full force and effect according to its terms unless modified by the Division in writing. A copy of the agreement providing for the Surety for the reclamation obligations herein is included as ATTACHMENT A to this Contract.

5. If the Surety expressly provides for cancellation or termination for nonrenewal:

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A. The Operator shall within 60 days following the riii;;'/;iri', ". J receipt of notice that the Surety will be terminated or HN/jjj$t1;iJ cancelled , provide a replacement Surety sufficient in a form and amount, as required by the Act, to replace the cancelled surety; or

B. If the Operator fails to provide an acceptable replacement Surety within 60 days of notice of cancellation or termination, the Division may order the Operator to cease further mining activities, and without further notice proceed to draw upon letters of credit, to withdraw any amounts in certificates of deposit or cash and/or any other forms of surety, and to otherwise take such action as may be necessary to secure the rights of the Division to perfect its claim on the existing surety

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for the purpose of fully satisfying all of the reclamation obligations incurred by the Operator prior to the date of termination, and the Division may thereafter require the Operator to begin immediate reclamation of the Lands Affected by the mining operations, and may, if necessary, proceed to take such further actions as may be required for the Division to forfeit the surety for the purpose of reclaiming the Lands Affected.

6. The Operator's liability under this Contract shall continue in full force and effect until the Division finds that the Operator has reclaimed the Lands Affected by mining operations in accordance with the Act and regulations, as amended. If the mining operations are modified or for any other reason vary from those described in the Complete Notice of Intention, the Operator shall immediately advise the Division, and the Notice of Intention shall be revised and the Surety amount shall be adjusted as necessary.

7. If reclamation of a substantial phase or segment of the Lands Affected by the mining operations is completed to the satisfaction of the Division, and the Division finds that such substantial phases or segments are severable from the remainder of the mining area, Operator may request the Division to find that Operator has reclaimed such area. If the Division makes such finding, Operator may make request to the Division for a reduction in the aggregate face amount of the Surety, and the Division may reduce the surety to an amount necessary to complete reclamation of the remaining mining operations as anticipated by the Complete Notice of Intention Y:"jpcordance with the requirements of the Act and regulations, as amended!.l(j ~$A ~

8. Operator may, at any time, submit a request to the Division to substitute 'fII1f1J surety. The Division may approve such substitution if the substitute surety meets the requirements of the Act and the applicable rules.

9. Operator agrees to pay all legally determined public liability and property damage claims resulting from mining operations, to pay all permit fees, to maintain suitable records, to file all required reports, to permit reasonable inspections, and to fulfill all sundry reporting requirements applicable to the mine as required by the Act and implementing rules.

10. Operator agrees to indemnify and hold harmless the State, Board, and the Division from any claim, demand, liability, cost, charge, suit, or obligation of whatsoever nature arising from the failure of Operator or Operator's agents and employees, or contractors to comply with this Contract.

11.lf Operator shall default in the performance of its obligations hereunder, Operator shall be liable for all damages resulting from the breach hereof including all costs, expenses, and reasonable attorney's fees incurred by the Division and/or the Board in the enforcement of this Contract.

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12. Any breach of a material provision of this Contract by Operator may, at the discretion of the Division, in addition to other remedies available to it, result in an order by the Division requiring the Operator to cease mining operations, and may thereafter result in an Order, subject to an opportunity for notice and hearing before the Board, withdrawing and revoking the Notice of Intention, and requiring immediate reclamation by the Operator of the Lands Affected or forfeiture of the Surety.

13. In the event of forfeiture of the Surety, Operator shall be liable for any additional costs in excess of the surety amount that is required to comply with this Contract. Upon completion of the reclamation of all of the Lands Affected, any excess monies resulting from forfeiture of the Surety shall be returned to the rightful claimant.

14. The Operator shall notify the Division immediately of any changes in the Operator's registered agent, the Operator's address, form of business, name of business, significant changes in ownership, and other pertinent changes in the information required as part of the Notice of Intention. Notwithstanding this requirement, any changes to the Notice of Intention, and any errors, omissions, or failures to fully or accurately complete or update the information on the Notice of Intention, or the attached maps, shall not affect the validity of this Contract and the rights of the Division to enforce its terms.

15.lf requested by the Division, the Operator shall execute addendums to this Contract to add or substitute parties, or to reflect changes in the Operator, Surety, and otherwise modify the Contract to reflect changes in the mining operations as requested by the Division. All modifications must be in writing and signed by the parties, and no verbal agreements, or modifications in any of the terms or conditions shall be enforceable.

16. This Contract shall be governed and construed in accordance with the laws of the State of Utah.

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The signatory below represents that the Operator, if not a natural person, is a properly organized entity in good standing under the laws of Utah and the United States, is registered as an entity authorized to do business in the State of Utah, and that he/she is authorized to execute this Contract on behalf of the entity as Operator.

OPERATOR:

Operator Name

By crust~ G. F't('le~ Authorized Offic~r (Typed Pnnted)

F+t..s i ~e"\ t

STATEOF _U~~_~~ _____________ )

COUNTY OF So.U- Ltkt... ) ss:

On the lfo~day of rYl4rc..k. ,2001 , 0l.\&tio1~. F;rl~~ ;;ps personally appeared before me, who being by me duly sworn did y that

(h he is an OW!1e.(" (owner officer, director, partner, agent or other (specify)) of the Operator /AIII;-b.f s:hr1(.. + f.k..r1~H.r.,C . and duly acknowledged that said instrument was signed on behalf 0 said Operator by authority of its bylaws, a resolution of its board of directors or as may otherwise be required to execute the same with full authority and to be bound hereby.

Notary Public Residing at Sol.!-- l-ke.. C'b kI-Lk

05-0'&-2010 My Commission Expires:

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DIVISION OF OIL, GAS AND MINING:

STATE OF 11tah . COUNTY OF SCI 1+ Lec.ke.

) ) ss: )

On the~ day of ml1~ , 20QI, :fohn'R. Bo..z.Ct personally apP'eared before me, W 0 being duly sworn did say that he, the said

rToh 0 R . 50 z a . is the Director of the Division of 011, Gas and Mining, Department of Natural Resources, State of Utah, and he duly acknowledged to me that he executed the foregoing document by authority of law on behalf of the State of Utah.

My Co'ffimi~sion Expires:

Page §..of§ Revised 8/9/2006 Form MR-RC (SMO)

@' . PENBERRY , . NOTlUIY PUIIIUC -STATI Of' &mH ~II 119~fOl1MTEMPlI..t~ 1.10

.... ,..~<;n'(UT ... 116 ............ .01' It

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Commodity: STONE Mine Name: UNITED STONE County: Uintah Disturbed Acres: 3 (three)

FACT SHEET

Operator Name: United Stone & Design, Inc. Operator address: PO BOX 909 DUCHESNE UT 84021 Operator telephone: (435) 738-2366 Operator fax: (435) 738-2367 Contact: JUSTIN FARLEY Operator email: [email protected]

Surety Type: -"""T'o;~;'--=,"r.-i<;:-V-1""';':'>~ Bank Name:

----'='-'-"''''''''+---#''::+-''''-'-------'"''-=-

Surety Amount: -~~ot:=:~:......-Account Contact: ..a....o<--"""-'~------'-''''--L....--l=-

Escalation Year: ~voo4 Tax ID or Social Security (for cash only): ~----'--~ __

4/9/201311:31 AM

03162007. pdf https:llfs.ogm.utah.gov/FILES/MINERALS/PERMITS/047/S047007.,.

Payment Schedule for United Stone & Design, Inc.

8/0471079

Table X C.HEC\(

Authorized Signature and Date Number Due Date Payment Additional Total

Payment Received (by) Amount

Pmt. Received

,IN:? 0/vv 1 May3l, $900.00 4'120 ~ ((;1ifL 2007

2 June 30, $900.00

2007

3 ]uly31, $900.00

2007

4 AUguSI3l, $900.00

2007

5 September $900.00

30,2007

6 October 31, $900.00

2007

7 November $900.00

30,2007

8 December $900.00

31,2007

9 Jan 31 $900.00

2008

10 Feb 28 $900.00

2008

II Madl, $900.00

2008

12 April 30, $900.00

2008

Payment Schedule Page 1

8 of 11 4/9/2013 11:31 AM

03162007.pdf

9 of 11


RECL, ·'ED

MAY 022007 Total amount required: $12000.00 'If'

OIV. OF OIL, GAS & MIN\ I.~; Down payment of $1200.00 with a balance of $1 0,800.00 payable in 12 payments at

$900.00 per month.

I agree to the amounts identified in this payment schedule as shown on Table X and will

abide by the payment criteria. I understand all mine sites must be adequately bonded.

Operator 4~~~;:::--~..A-~~:f::!:::-:7-------:7"""::::::::=----------

Date - '50- -; ---+-----~~~---------------------------

Agreed an~ APproveS1Ln: e DIVIsion DIrector . R _

i~ ure I

Date 51,~/o7 .. ,


4/9/2013 11:31 AM

03162007. pdf

• Qnlted Stone & De.lgn, ' P.O. Box 909

D~h.l!.ne , UT 84021 4~S.73s..2366

07/03 ZIONS FIRST NA' BANI< DucheenoJ{:lllloe. ......x<894·

• OUCt'i88Ile, Utah 8401!1 3'..sI12~

? ~ (o.lllli " .iI!,";l ,

t CffidfJ, 1. Utah Olvlst~~ ,Of OIJ, ~a~1 ,& ~!nlng '1 • ,1 :".: \', ~ : .;);\~ , . ! One Thousand Two ~dHdred and OO/100u ............ I\. ~.u.~. ,''4 .**u-'"-'.1'" •• w. **

I . "

Utah DivlsiQn p1 011, Gas; & Mining

: , nUJI/UJ

, I#, ~ f. .

'ln~lal pmnt for reolar,n$tion surety VhHed stone &

• t $

Cash RECEIPT

4QO/2007

I ~( **1,200.00 . '.

Date S/rv/ Or , MINERALS BOND st I ZV 0 v 0

100fll

Penn It Number

Operator

Received by

Signature I confirm the dollar amount of this check Is correct +::OOf-~---

- - - ----- - -- -- - - - ----- - --- - -- -- ---- ------ - ---- - -- -- - --- -------- - - -- -- --- --- --- - -- - -- ~

6282

4/9/2013 11:31 AM

03162007.pdf - -- . • F~B-05-2007 MON 05: 23 PM SERVICE INSURANOE vERNAl.ttPS '/I?A~Wo~taf4~%YB{2'~MINERALS/PE~IdfI047/S047007 .. .

11 of 11

ACORQ,. CERTIFICA.': OF LIABILITY INSURA~ JE

Service Insurance Agency, P.O. 10)( 1790 205 North Vemll Avenue V.rnal, UT .407.

PO Box gg Dpchesn., UT 84021

• WOIilICIiM COWINIAT'IOI' AND 'lIPLI:I,..r UAlUIY N« PIUlI'ItIErDfllPNmII!!RItICECllTlV! 0fIPICSP./M1!NB!A ~M

IKIkNo

State of Utah Attention ! Paul

ACORD 2:S (2001/08) FAX;

• ,

08/15/2006 08/1$/2007 penalty increased to $12,000

&HOU\..P AI« Of' TlI! AIIOV!! f'OUCII ... CNIOII.~ II1II'0,.. 'fH~

EXI'IAA TIOtIIlA1I "nftI1tIOf'. ne ~ INfIURIiI WII..L!MIIAVOR TO IIIAIL

....JL D.t.YI ~ I'IOTICI TO 1)11: OGtT!ACA1I HOUIIR NAIIII) TO 1HI LIFT,

IUT I'AIIoIMe TO MNl.IUCIf II011OII1CAU. WOII: HO O8IJCIAlIOH OIl UABILITY

OF AMY 1QIII..otf 'Mil In AOINI'I OR MP","""A1IVU.

FEB 052007

DJV. OF OIL, GAS & Mn,m'i :~

1888

4/9/2013 11 :31 AM

EXHIBITE

04252007.pdf https:llfs.ogm.utah.gov/FILES/MINERALS/PERMITS/047/S047007 ...

10f3

State ~'Utah DEPARTMENT OF NATURAL RESOURCES

MICHAEL R. STYLER EteCUliv(' Dire( tur

JON M. HUNTSMAN, JR. Division of 011 Gas and Mining

GovernQr

GARY R. HERBERT Lieutenanl Go\'f!rnor

Mr. Justin Farley,

JOHN R. RAZA D;nfion Director

United Stone and Design. Inc. P. O. Box 909 Duchesne, Utah 84021

April 25, 2007

Subject: Payment Schedule as Reclamation Surety. United Stone and Design, United Stone and Design. S0470079, Uintah County. Utah

Dear Mr. Farley:

Please find enclosed a payment schedule for the reclamation surety in the amount of $12000.00. Please sign and date the schedule and return the original along with a check in the amount of $1200.00 to

initiate final approval. The next payment in the amount of $1000.00 must be received in this office by May 31, 2007.

Please direct inquiry and correspondence to Ms. Beth Ericksen, bonding coordinator, at 801-538-5318 or [email protected].

Sincerely, ,

~7n.~ WDaron R. Haddock /' Permit Supervisor

Minerals Regulatory Program

DRB:BE:pb Enclosure: Payment Schedule cc; Beth Ericksen P,\UROUPSIMINERALSIWP\M047-Uinlah",'i047007'J-UnitedStone\final·.Jtr-paymcntplan.doc

1594 West North Temple. Suite 1210, po Box 145801, Salll.akc City, liT 84114-5801 telephone (801) 538-5340 • racsimile (801) 359-3940 • Try (801) 538-7458 • "'",\Cogm 1I1i111.1(OI OIL.., GAS • MINING

4/9/2013 11:37 AM

04252007 .pdf https:llfs.ogm.utah.gov/FILES/MINERALS/PERMITS/047/S047007 .. .

Payment Schedule for United Stone & Design, Inc.

S/047/079

Table X

Authorized Signature and Date Number Due Date Payment Additional Total

Payment Received (by) Amount

Pmt. Received

I May31, $900.00

2007

2 June 30, $900.00

2007

3 July 31, $900.00

2007

4 August 31, $900.00

2007

5 September $900.00

30,2007

6 October 31, $900.00

2007

7 November $900.00

30,2007

8 December $900.00

31,2007

9 Jan 31 $900.00

2008

10 Feb 28 $900.00

2008

II Mar31, $900.00

2008

12 April 30, $900.00

2008


2of3 4/9/2013 11:37 AM

04252007.pdf

30f3

https:llfs.ogm.utah.govIFILES/MfNERALS/PERMITS/04 7 IS04 7007 .. .

Total amount required: $12000.00

Down payment of$1200.00 with a balance of$1O,800.00 payable in 12 payments at

$900.00 per month.

I agree to the amounts identified in this payment schedule as shown on Table X and will

abide by the payment criteria. I understand all mine sites must be adequately bonded.

Op~ator ________________________________________________ __

Signature

Date ------------------------------------------------------------

Agreed and Approved by Division:

Division Director

Signature

Date -----------------------


4/9/2013 11:37 AM

EXHIBITF

05212007.pdf https:llfs.ogm.utah.gov/FILES/MINERALS/PERMITS/04 7 IS04 7007 .. .

1 of 1

State : Utah DEPARTMENT OF NATURAL RESOURCES

MICHAELR. ST\'J,F.R f:Xcclltlve DI.Tr!c/nr

JON M. HUNTSMAN,JR. Division of Oil Gas and Mining

Guvernor

GARY R. HERBERT Lieutenant Governor

Justin Farley

JOHN It. BAZA DIvISIOn D,rector

United Stone and Design P. O. Box 909 Duchesne, Utah 84021

May 21,2007

Subject: permit to Commence Small Mining Operations. United Slone and Design, United Stone Mine. 80470079, Task # 1501 & 1544, Uintah County, Utah

Dear Mr. Farley:

The Division finds your notice of intention (Notice) complete and approves the reclamation surety for the United Stone mine. You are now permitted to conduct small mining operations as outlined in the Notice provided you have written approval from any other appropriate agency.

Please keep in mind the following regulatory requirements.

• Mining disturbance is only allowed in the area identified in the Notice and Reclamation Contract.

• Stockpiling topsoil material prior to beginning activities will help ensure successful revegetation. Even the first few inches of undeveloped material are worth saving to aid in later revegetation efforts, and future regulatory surety release.

• If you encounter any archaeological or historical items, you arc asked to notify this office and State History of your find. Pennit fees are due July 30.

• Annual reports are due by December 31 st. • The reclamation surcty will be rcviewed every 3 years. • The Division request that the disturbed area boundary (including assess/haul roads)

be marked with metal T -posts to identify the area pennitted for mining.

1594 Wes' Nort11 'felltple, Suit. 1210, PO 8". 14581)1, Salt Lake ClI),. UT R4114-SlIOI telcphoDe (801) §38-~340 • r • .,iroiJ. (IItIJ) 35~-3940 • TTY (HOt) 538-74~8 • 1111")" ogm IIt~h go\' OIL, GAS a. NIHIHq

r 4/9/2013 11:38 AM

RECEIVED ,\ .

! l •. J

Form MR-SMO This Sec1lon for DOGM Use DIV. OF OIL, GAS & MINING (Revised Oclober 20, 2005) Assigned DOG/t ile No.: S I;' '111 07 f1

DOGM Lead: ill.! IWt ({ . ~ Permit Fee $ L 50 r~ Ck # 5'5 0

STATE OF UTAH DEPARTMENT OF NATURAL RESOURCES

DIVISION OF OIL, GAS AND MINING 1594 West North Temple Suite 1210

Box 145801 Salt Lake City, Utah 84114-5801

Telephone: (801) 538-5291 Fax: (801) 359-3940

NOTICE OF INTENTION TO COMMENCE SMALL MINING OPERATIONS

The informational requirements of this form are based on provisions of the Mined Land Reclamation Ast, Title 40-8, Utah Code Annotated 1987, an,j thf.l General Rules c,s promulqated ur,der the Utah Minerals Regulatory Program,

"Small Mining Operations" means mining operations which disturb five or less surface acres at any given time.

* * • * •••••

I. GENERAL INFORMATION (Rule R647-3-104)

1.

2.

Name of Mine: rJn~ rej ~r.:pvve.. ~jp "Pc!:> (:"3 ,',-, Name of Entity Applying for Permit: U V\ '!:?! 5j-44 e q.tA P?~i4 /I\: ( }:. c (

~~~~~~('(Ylhorlzed Offj~!~ i- j ~-=== . J

~~~~~~~J5'~%il~ E 'FaHffi¥=z~%ili E-mail Address: ____ ____ ___ _ ________ _

Entity is a: Corporation ~ LLC () Sale Proprietorship (dba) ( ) Partnership ( ) General or limited Individual ( ) Other () - specify type) ______________ _

Entity !TIUS~ be registered (ar.d ~3i!1t~ir. regist:-ation) ' .... itt; the Stc;te of Utc;h, Division of Corporations wwwcommerce.utah.gov, Are you currently re91ster:: to go business In the S)late of Utah? ~ Yes 0 No , ' Entity # / - L? Z '-1 'to ro ( f E. [J\l D IV 5 I' 0 II\, ;3(:. (C ~-po f' cA t-t c..- ~ , 2350 t-I ~ D~ iz-t ---. C) l Lf -z..

L~cal Business License # ~ I Issued by: County or City V l}(-""e.:31\C:.. _

3. Entities Representative (if different from #2) Name: ________________________________________________________ _ Address: ______________________________________________________ _

City, State, Zip: ________________ ~----------------Phone: Fax: _______________________ __ E-mail Address: ____________________________________________ _

4. If Partnership or Sole Proprietor:

x

Form MR-SMO

Name of 1st partner I Sole Proprietor: Name ________________________________________________________ __ Address: ______________________________________________________ _

City, State, Zip: ________ ~----------------Phone: Fax: ________________________ _ E-mail Address: ____________________________________________ _

If Partnership: Namp. of 2nd Partner: ___________ __ Address: _____________________________________________________ _ City, State, Zip: ________________________________________________ _

Phone: Fax'

E-mail Add ress: ___________________ .-=--=--=--=--=--=--=--=--=--=--=--=--=--=--=--=--=--=--=--=--=--=--=--=--=

If Corpo ration : __ ~ ~ \\ \ Name of~icers: \)p<0,'" b.( /..~V\ Title: ---l!:r~.l...ro~=-~~=-~:.>:;(f""-<JL= :~_t'~ _ ___ ~=-.J.Ib...];,f..Jo..'~(....::.,~--1:&!~(....L{~=+l ____ 4\ ___ Title: ___ ...I.LloL-'-odoo_.a-='!...LL..d~-=-':::'=~\ __ _______________________ 1 _______________ Title: ______________ _ _____________________________________ Title: _______________ _

If Limited Liability Company: Member Managed 0 Manager Managed 0 Name of 15t Member/Manager: ______________________________________ _

Address:~~--------------------------------------------------City, State, Zip: _____________________ ---------------------------------Phone: Fax: ________________________ _ E~mail Address: ____________________________________________ __

Name of 2nd Member/Manager: ______________________________________ _

Address: __ ~----------------------------------------------------City, State, Zip: __________________________________________________ _

Phone: Fax: E-mail Address: -------------------------

Name of 3rd Member/Manager: Address: -----------------------------------------City, State, Zlp: _ _ _______________________ _ Phone: Fax: ________________________ _ E-mail Address: ____________________________________________ __

APPROVED

MAY 1 8 2007

DIY. OIL GAS & MH!; i'.

Page 2

5. Ownership of Land Surface:

Private (Fee))( Public Domain (BLM) D National Forest (USFS) D State Trust Land/School Sections D State Sovereign Lands D Other (please describe): ________________________ _

Name r2\..;') ~,,';t'l Name _______ I ______ __

Address,_-t.(.,u\ L""-'/~4~4l<'-'Jtvl'-'------...Jc,l-------'c=("__')____=t_"\:~.....::O::....' _Ic--<., __ Address, __________ , _______ _

Name ______________ __ Address, __________________ _

Name ______________ __ Address, __________________ _

6. Ownership of Minerals:

Private (Fee) K Public Domain (BLM) 0 National Forest (USFS) D State Trust Land/School Sections D State Sovereign Lands D Other (pl~Clse describc) · _______________________ __

Name i!1J/L.=1 r':~e.-I Address Olj4~"'1/1 C,..L ~ Name , Address ______ ________ ____ _

ot.. Name _____________ __ Address ________________ _

Name ____________ __ Address ________________ __

BLM Lease or Project File Number(s) and/or USFS assigned Project Number(s): __ _

BLM Claim Numbers ________________________________ _

Utah State Lease Number(s):, _ _ _________________ _

Name of Lessee(s) _______________________________ __

7. Have the above surface and mineral owners been notified in writing? Yes NO,-"pi~ ______ __

~no, why nqt? 4--: ~L 8 0n. \-y\ ~'> kcG4.~ eo ~'cAhr~\ /LeOOl rSJvl\. --.:IQ =-r~ Ke- U~fa."= h.( { dL~ 5~af'.L

Please be advised that if State Trust Lands are involved, notification to the Division of Oil, Gas and Mining alone does not satisfy the notification requirements of Mineral Leases upon State Trust Lands. Exploration or mining activity on State Trust Lands requires a minimum of 60 days notice to the Trust Lands Administration prior to commencing any activities. Please contact the School Institutional Trust Lands Administration (SITLA) at (801) 538-5508 for notification requirements.

8.

Form MR-SMO

Does the Entity have legal right to e'J(:and conduct mining operations on the land covered by this notice? Yes No ___ _

APPROVED

MAY 18 2007

OIV OIL GAS b.. IVllrJII,,; Page 3

II. PROJECT LOCATION & MAP (Rule R647-3-105)

1. Project Location (legal description):

Counly{ies}: _ _______________________ ___ _

__ 1/4, of __ 1/4, of _ _ 1/4: Section: __ 1/4, of __ 1/4, of __ 1/4: Section: __ 1/4 , of __ 1/4, of __ 1/4: Section:

C-' Township: (2 5 Range: 'Z/t Township: ~ Range: {)(p Township:..i..3.....:L Range:

UTM East _________ (if known) UTM North ________ (If known)

Name of Quad Map for Location : ____________________ _

2. An accurate topographic base map showing the location of the proposed small mining operation must be submitted with this notice. The areas to be disturbed including access roads, must be plotted in sufficient detail so that they can be located on the ground. It is recommended that the Permittee 1 Operator also photo document, plot and label any pre-existing disturbances in the immediate vicinity that he is not responsible for.

3. The proposed (5 acre or less) disturbed area boundary (including access/haul roads) should be marked in the field ON THE GROUND with metal T-Posts (or with some other marker of equal effectiveness). Markers should be appropriately spaced so that the next marker in either direction is clearly visible with the naked eye.

III. OPERATION PLAN (Rule R647-3-106)

1. Type of mining : Surface l( Underground ~

2. Mineral(s) to be mined: Q g\>I\.~. I f\c\ 540N

3. Amquntpf raterial to be extrac e,d, moved or proposed to be moved: c:A~1\ d? ff\l(t fl, A lr e"l¢1\ ;S "ll ,:l. ( o{)t- o\=- Yh~ C-1'OJ,,,--Jl , ..... PI.)t-JrJ,&

~.re.c\':>' . --(}..-U\. W ..... f l N o..> we.-... S C. 1\.0 ,4z.U{'" Ji~1l I ,, (.fe.. ;;...,,"-. . 4. Will any water, liquid chemicals, reagents, or other solutions be used, produced

or discharged as part of the mining or milling process?

5.

6.

7.

Form MR-SMO

Yes 0 No J!( If yes, please describe (add extra pages if needed)

o New Road(s): Length _____ ,(ft)

o Improved Road(s) : Length (ft)

N () A ~ w r Va d'/~

Width ______ (ft)

Width _____ (ft)

APPROVED Page 4

MAY 1 8 2007

DIV. OIL GAS & Mli.\\ NC

~'9 8. Total project surface acreage to be disturbed: ~ (acres) PLEASE SPECIFY

EXACT ACREAGE - (this will be used to determine surety bond amount - see #V/).

9. Proposed startup date of project (month, year)_-,'Q",--,/I--LI--4-)-,6--!.~ ______ _

10. Proposed completion date of project, if known (month, year) _______ _

IV. OPERATION AND RECLAMATION PRACTICES (Rule R647-3-107, 108 & 109)

The reclamation and operation obligation is to keep the area clean and safe, minimize hazards to public safety, return the land to a useful condition, and reestablish at least 70 percent of the premining vegetative ground cover. To accomplish this, the Permittee / Operator will need to perform reclamation concurrently, or at the completion (within one (1) year) of mining. Please refer to The Practical Guide to Reclamation in Utah, available at www.ogm .ut.gov.

1. Keep the mining operation in a safe, clean, and environmentally stable condition.

2. Permanently seal all shafts and tunnels to prevent unauthorized or accidental entry.

3. Plug drill holes with a five foot cement surface plug. Holes that encounter fluids are to be plugged in the subsurface to prevent aquifer contamination.

4. Construct berms, fences, or barriers, when needed, above highwalls and excavations.

5. Remove, isolate, or neutralize all toxic materials in a manner compatible with federal and state regulations.

6. Remove all waste or debris from stream channels.

7. Dispose of any trash, scrap metal, wood, machinery, and buildings.

8. Conduct mining activities so as to minimize erosion and control sediment.

9. Reclaim all roads that are not part of a permanent transportation system.

10. Stockpile topsoil and suitable overburden prior to mining.

11. Stabilize highwalls by backfilling or rounding to 45 degrees or less, where feasible; reshape the land to near its original contour, and redistribute the topsoil and suitable overburden.

12. Properly prepare seedbed to a depth of six inches by pocking, ripping, discing, or harrowing. Leave the surface rough.

13. Reseed disturbed areas with adaptable species. (The Division recommends a mixture of species of grass, forb, and browse seed, and will provide a specific species list if requested.)

14. Plant the seed with a rangeland or farm drill, or broadcast the seed. Fall is the preferred time to seed.

V. VARIANCE REqUEST (Rule R647-3-110) Any variance request must be approved in writing by the Division

Yes D No D Any planned deviations from Rules R647-3-107, Operation Practices, R647-3-108, Hole Plugging Requirements, or R647-3-109, Reclamation Practices, as summarized above (see IV. Operation and Reclamation Practices Item # 1-14), should be identified below listing applicable rule number. Give justification for the variance(s) and alternate methods or measure to be utilized. A variance shall be granted if the alternative method or measure proposed will be consistent with the Act

Form MR-SMO APPROVED

MAY 1 B 2007

DIV. 011. GA~) & [ViliJ, '

Page 5

Small Mine Notices require a $150.00 fee which must accompany this application or it cannot be processed by the Division.

NOTICE: The following person(s) are authorized and designated to recei ve Notices of Violations, Cessation Orders and all other Notices required by the Division to be given to the permittee or operator :

Name: ~.\:~~J3 ~( I..!~ ~~~~~~;~. 14£!? ( it !6=I{DZ ( Phone: ~ 1L([ -ZJ ,~ Fax: llJ5..- 73 Y Z-Jk J E-mail Address : _____________ ____ _____ _

Name: ___________________________ ___ Addres~ : _______________________________________________ _ City , State, Zip: ______ ________ -.-, ___________________________ _ Phone: Fax: ___________ _ E-mail Address : _ ____________________ _

VIII . SIGNATURE REQUIREMENT

c~ck the box and place your initials on the line provided)

~~rM--~ I have enclosed the required permit fee .

-Inf....#--~ I have enclosed a complete Recl amation Contract (Form MR-RC) and the appropriate reclamation surety amount or have made arrangements as to when the

• r-=6"---~ surety will be furnished . " ~ I understand that I am not authorized to create any surface disturbance until the

surety amount is posted and approved in writing from the Division of Oil , Gas and Mining and any other authorized regulatory agency .

CERTIFICATION I state under penalty of per jury under the laws of the state of Utah and the United States of America that:

a. I have read this form and rteclare the information, statements and/or documentation are true, correct and complete to the l.Jest of my knowledge and belief; AND

b. I commit to the reclamation of the aforementioned small mining project as required by the Utah Mined Land Reclamation Act (40-8) and the rules as specified by the Board of Oil, Gas and Mining.

c. This certification must be executed by an executive officer if the applicant is a corporation; by a partner if applicant is a partnership (general or limited); owner if plicant is a s Ie. proprietorship; member or manager if applicant is a limite la ility co ~

O:IFORMSINoticeslmr-smo-2005.doc

Form MR-SMO

Date: ~ '1:1 2-(, , 6 (;,

APPROVED

MAY' B 2007

DIV OIL GAS IS! MI~JING

Page 7

UNITED STATES DEPARTMENi OF THF. INTFRrOR

OEOLOGICAL SURVEY

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AGENC'{ DRAW NW QUADRANOLE UTAH _ UINTAH CO

15 MINUTI! SERIES (TOPOQRAPHIC) '''I u·~

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ROAD CU.SSlfICATI014 LJpt..ivty ".IN .• ~ ..,..t ... , U,.rnplMld ,Old IlU ()j dry "" IO'CMrl."'I ...... _ _ . ~ .•. _ .ul ......

APPROVED NAY 18 2001 AGENCY DRAW NW, UTAH

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OIV. OIL GAS & MI. ,PHOIOI!EVIUD 1M1

{)U~ ,oelll mil' lllUne!l v .. ,

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EXHIBIT G

11202007.pdf https://fs.ogm.utah.gov/FILES/MINERALS/PERMITS/04 7 IS04 7007 ...

1 of 1

JON M. HUNTSMAN, JR. GOl'cmor

GARY R. HERBERT Lieutt'wurl GnVtJnwr

Mr. Justin Farley

Sta of Utah DEPARTMENT OF NATURAL RESOURCES Division of Oil, Gas & Mining

l\IICHAEL R, STYLER E.H·clllil'e Director

JOHN R. BAZA Divis;"" Din'clo/,

November 20. 2007

P.O. Box 909 Duchesne, Utah 84021

Subject: Demand for ull urety Amount 0[$7.20 .00. United Stone & Design, Uni ted Stone Mine, S/047/079, Uintah County, Utah

Dear Mr. Farley:

The Division has approved a payment schedule and the fifth/sixth surety payments of $900.00 were due on September 30,2007 and October 31,2007. The Division has sent two letters requesting payment, and has received no response. Payment plans arc a courtesy provided by the Division, and are taken very seriously.

Since United Stone & Design has failed to respond, the Division is requiring 0111 remainillg surely pm mellf ill the tllflOtlllt $7,200.00 /lOW he paid.

This leaves United Stone & Design out of compliance, and may require a cessation of all mining activities until the outstanding bond is filed with the Division.

Please direct correspondence and inquiry to Mr. Daron Haddock, 801-538-5325 or [email protected]. Thank you for your prompt attention to this important pennitting requirement.

DRH:.TPpb

Sincerely,

;OOM--Q, ~cJct-Jc Daron R. Haddock Pennit Supervisor Minerals Regulatory Program

One letter l'RR 7002 0510 00038(,034094, One Icuer regular mail cc; Paul Baker, DOGM

Jed Pearson, DOGM Daron Haddock, DOGI\I Susnn Wllite, 1l0UJI·1

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EXHIBIT H

12282007.pdf https:llfs.ogm.utah.gov/FILES/MINERALS/PERMITS/04 7 IS04 7007 ...

1 ofl

JON M. IlU:-.ITSMAN, JR. Gm'emol

GAR\, R. HERBERT Ueuleuunl GorenlOr

Justin Farley

State vi Utah DEPARTMENT OF NATURAL RESOURCES

MICHAF.I. R. STYLF.R EX{,Clllil'C Director

Division of Oil Gas and Mining

JOHN R. BAZA Dh'J,\'iul1 Director

December n. 2007

United Stone und Design P. O. Box 909 Duchesne, Utah 84021

Subject: ResPQ!l~(UQ~E",-,I~ecl<!t~J'O>!!nC!.!i~c...!.M~al~· I ~!.!.!.!'~~~~~~~"-...!!!~~~>.!.!.L~~~~~~~!....I.l--=~~'-'<.l U intah _Col1I11Y.JJtah

Dear Mr. Farley:

On November 20,2007, the Division wrote you demunding that you submit the full surety balance of $7200.00. On December 17,2007, we received an electronic mail message stating that you had made the payments but that the checks were returned with letters saying there was no longer any place to apply the payments.

We have no record of receiving recent payments and do not know who might have returned your checks with these letters. There is an account with Zions Bank established through the Utah State Treasurer, and the money you have submitted is in this account. We have tried unsuccessfully to contact you both by telephone and electronic mail to discuss this problem.

The Division desires to work with you to obtain the required surety. If you fail to maintain adequate surety, your Notice of Intention to Conm1cnce Small Mining Operations will be withdrawn, and the Division will requirc inunediate reclamation. Failure to reclaim will result in the Division seeking forfeiture of the existing reclamation surety.

If you have questions about this letter, please contact me at 801-538-5325 or Paul Baker at 801-538-5261. We encourage you to can or write to avoid potential enforcement and othcr actions.

SMW:PBH:pb

Sincerely,

!O~Q~d~ Daron R. Haddock Pcrmit Supervisor Minerals Regulatory Program

0:11'.104 7-Uintah\S04 70079-United Stone\draft1Itr-surety-12282007 ,doc

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St~"e of Utah DEPARTMENT OF NATURAL RESOURCES Di"ision of OiJ, Gas & Mining

JON M. HUNTSMAN, JR. Go~'ernor

GARY R. HERBERT Lieuferlalll Goven,or

MICIIAEL R. STYLbR f:.\rculil'(' Dime/or

JOHN R. DAZ/\ DivisivlI Director

January 8, 2008

Certified Return Receipt 7004 2510 0004 1824 9009

Justin Farley United Stone and Design P. O. Box 909 Duchesne, Utah 84021

Subject: ec1amation Requirement. United tone and Design, Uni ted Stone QUain, S0470079, Uintah County, Utah

Dear Mr. Farley:

On November 20,2007, the Division wrote you demanding that you submit the full surety balance of $7200.00. To date, we have not received the full surety or any payments toward that amount. Therefore, you are no longer authorized to conduct any mining operations at this site and the Division, requires that the sites be reclaimed as soon as possible. Reclamation must be completed by June 1,2008. If you submit the full surety by that date, the Division will withdraw the reclamation requirement, but if reclamation is not completed or the full surety has not been submitted, the Division will withdra\v your notice of intention and seek forfeiture of the existing surely.

If you have queslions about this letter, please contact me at 801-538-5325 or Paul Baker at 801-538-5261.

SMW:PBBpb cc: Jed Pearson

Sincerely,

{:jcu~ _9fr~ Daron R. Haddock Permit Supervisor Minerals Regulatory Program

P: \UROU PS\lvIIN ERA LS'.Vi"P,\M04 7 -U IIltahlS04 70079-UIII tedStonc\final',ltr-surcty-O I 08200!).doc

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MINERALS PROGRAM

Citation for Non-Com pliancc Utah Minerals Regulatory Program I::;I)~ Wl'St 'iorlh I\'mpll', Sail I.al..l' (,il~, L'T H~II~

<I' ...... .. . ,, ~ '" !'hom': OWl) SJH-5J~O Fa\: (Hili) J51)-JI)~1I

D NOTICE OF \'IOL.HION ~ n:SS.HIO:"l OIWF.H, (CO) I D FAIlXRE TO A8ATE CO

hl"l't""'nr \umhr'- ;lIuIIU: SCI 'Iill' \:"".: \.l Ij I fri)

( .rlili.!! Hrlll,.11 Hn.il" \,,,"1,,": I

'"tUI'{' uf 1·~llIliliIJII. "ra!'lil'!'. fir \ iulaliuII:

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I~ This order requires Cessation of ALL mining activities. (Ch~ch: hox ifarrropri:ll~.) D Clllldili,"1. pra':li..:..:. ,I' \ i .. lali,," i, ,'r,'alill~ ,111

illllllill,'111 d;rIl~,'1' 1,111..:,.1111 "r ,akl~ Ill' Ih.: I'uhli( .

o ( ·'"Idillllil . 1', .. l.:lk,·. Ilr \ i"lali<111 i, I.·;ru:illg ", , ;111 n:<l'nllabl~ 11..: ..:\111.',1.:01 I" ,;111,,, 'lglll"C""\. 11111111110:'11

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[g] I'o:nniltl'': 1 'Pl'l'ill,)r i, has 11.:.:n conducting mining a':li, ili.:s "ilhoul a I'.:rrrlil.

O l'..:rrl1ilt.:..: ha, faileJ ", ah"ll' \ 'iolaliul1( S) il1duJ..:d ill O"'licl' ,,' \ i" I;lIi"1I Ilr OCl',~ati"n Old.:r l\ilhil1limc

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D This order requires Cessation of PORTION(S) of mining activities.

Mining al'lil ities to 1Jl' ceased immediatel~' : ~Yes D:\o \hat!.'lll!.'nt Times (if:lliplirahlej.

A I \ H \ I " I :", ~ (> t, J; ~" (j

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SI:.T HEI ERSE SIDE O(Thil' F Oflll For /1I.fffllCf;OIlS . llUl . I(ldifiolllll/II(orlt/mitJII

Orrglnal DOG\1 Filc~ COP) Permittee Form DOG'I CIT ,\TION ReVised - -\ugust. 2006

0001

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EXHIBIT K

0002.pdl https:llfs.ogm.utah.gov/FILES/MINERALS/PERMITS/047 IS04 7007 .

State of Utah DEPARTMENT OF NATURAL RESOURCES

MICHAEL R. STYUR ExecUlwe DlYeClOr

JON M. HUNTSMA~, JR. Division of Oil Gas and Mining

Go\'t'rlJur

GARY R. HERBUtT UeUlemmt G,wcrrlOr

JOHN R. BAZA DivtJion D;tttrtor

CERTIFIED RETURN RECEIPT 7005257000004801 7314

Mr. Justin Farley United Stone and Design P. O. Box 909 Duchesne, Utah 84021

July 22,2008

Subject: Proposed Assessment for Cessation Order #MC-2008-59-0 1! United Stone and Design, Alumin King Mine, S/047/079, Uintah County, Utah

Dear Mr. Farley:

The undersigned has been appointed by the Division of Oil, Gas & Mining as the Assessment Officer for assessing penalties under R647-7.

Enclosed is the proposed civil penalty assessment for the above referenced cessation order . .The cessation order was issued by Division Inspector, Leslie Heppler, on June 16, 2008. Rule R647-7-103 et. seq. has been utilized to fonnulate the proposed penalty for the violation as follows:

$2,200

The enclosed worksheet specifically outlines how the violation was assessed.

By these rules, any written information which was submitted by you or your agent within fifteen (15) days ofreceipt of this Cessation Order has been considered in detennining the facts surrounding the violation and the amount ofpenaJty. Ifthe violation has not been abated at the time of the proposed assessment, the assignment of good faith points cannot be made. If you feel that you are eligible for good faith, you should supply relevant infonnation to the assessment officer within 15 days of the violation abatement date so that it can be factored into the final assessment. A reassessment will be completed and sent to you upon tennination of the Cessation Order.

1594 Wal Nortb Temple, SuUe 1210, PO BoJ. 145801, Salt L.keClty, UT 84114-5lI01 lelepboae (801) 53S-5J40' raalmlle (801) JS,..J940·Tn' (801) 5311-7458' WWl«ogm.u/an,gov

~1iJ OIL GAS. M,uHMC

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Page 2 Justin Farley S/047/0079 July 22, 2008

Under R647-7-106, there are two informal appeal options available to you:

I . If you wish to informally appeal the fact of the Cessation Order, you should file a written request for an Informal Conference within thirty (30) days of receipt of this letter. This conference will be conducted by the Division Director, Associate Director or appointed Conference Officer. This Informal Conference is distinct from the Assessment Conference regarding the proposed penalty.

2 . If you wish to review the proposed penalty assessment, you should file a written request for an Assessment Conference within thirty (30) days of receipt of this letter. If you are also requesting a review of the fact of violation, as noted in paragraph one, the assessment conference will be scheduled immediately following that review.

If a timely request for review is not made, the fact of the cessation order will stand, the proposed penalty(ies) will become final (after factoring in any good faith points upon termination), and the penalty(ies) will be due and payable within thirty (30) days of the final assessment. If you wish to appeal either the fact of the violation or the proposed penalty assessment, please provide a written request for such appeal to Vickie Southwick at the Division. Otherwise, please remit payment to the Division, mail clo Vickie Southwick.

LKlvs Enclosure: Worksheet cc: Vickie Southwick, Exec. Sec.

Sincerely,

Lynn Kunzler Assessment Officer

Vicki Bailey, Accounting O:\M047.Uintah\S0470079.UnitedStone\non-compliance\MC-2008-S9-01\proAssess-ltr-07222008.doc

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WORKSHEET FOR ASSESSMENT OF PENALTIES DIVISION OF OIL, GAS & MINING

Minerals Regulatory Program

COMPANY I MINE United Stone and Design! United Stone PERMIT Ml047/0079 NOV I CO # MC-2008-59-01

ASSESSMENT DATE _-----"-'=Ju~lyI-.-'2"'-'1'-'-, =20~O=8 ______ _

ASSESSMENT OFFICER Lynn Kunzler

J. HISTORY (Max. 25 pts.) (R647-7-103.2.11)

A. Are there previous violations, which are not pending or vacated, which fall within three (3) years oftoday's dale?

PREVIOUS VIOLATIONS EFFECTIVE DATE POINTS (1 pt for NOV 5pts for CO)

MC 06-03-07 August 2, 2007 5

TOTAL HISTORY POINTS~

II. SERIOUSNESS (Max 45pts) (R647-7-103.2.12)

NOTE:

1.

2.

For assignment of points in Parts II and III, the following apply:

Based on facts supplied by the inspector, the Assessment Officer will determine within each category where the violation falls.

Beginning at the mid-point of the category, the Assessment Officer will adjust the points up or down, utilizing the inspector's and operator's statements as guiding docwnents.

Is this an EVENT (A) or Administrative (B) violation? --=E::..;I1;.::;e=nto..-__ _ (assign points according to A or B)

A. EVENT VIOLATION (Max 45 pts.)

1. What is the event which the violated standard was designed to prevent?

Environmental Harm, Damage to Property, Reduced Reclamation Potential

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2. What is the probability of the occurrence of the event which a violated standard was designed to prevent?

PROBABILITY None Unlikely Likely Occurred

RANGE o 1-9 10-19 20

ASSIGN PROBABILITY OF OCCURRENCE POINTS 10

PROVIDE AN EXPLANATION OF POINTS: *** An Operator is required to file a notice of intention to commence mining operations and provide a reclamation surety with the Division of Oil Gas and Mining prior to conducting mining operations. The operator was approved for a payment plan for his surety, and has defaulted on payments. Less than ~ the required surety has been provided. If the operator defaulted, The Division would not have sufficient funds to reclaim the entire site. Points assigned at low end of 'likely' since the operator has defaulted twice on his payment plan, it is considered likely he would default on his reclamation responsibility

3. What is the extent of actual or potential damage? RANGE 0-25

In assigning points, consider the duration and extent of said damage or impact, in terms of area and impact on the public or environment.

ASSIGN DAMAGE POINTS -1L

PROVIDE AN EXPLANATION OF POINTS: *** The permit area has already been disturbed. The Division has less than ~ the surety needed to reclaim the site. With the surety, more than ~ of the area would potentially not be reclaimed. Since 'actual damage' has not occurred but the potential is considered likely, points were assigned at mid-point in the range.

B. ADMINISTRATIVE VIOLATIONS (Max 25pts)

1. Is this a POTENTIAL or ACTUAL hindrance to enforcement? NA RANGE 0-25

Assign points based on the extent to which enforcement is actually or potentially hindered by the violation.

ASSIGN HINDRANCE POINTS _.:..:.N/=A=--__ PROVIDE AN EXPLANATION OF POINTS: ***

TOTAL SERIOUSNESS POINTS (A or B) 23

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III. DEGREE OF FAULT (Max 30 pts.) (R647-7~103.2.13)

A. Was this an inadvertent violation which was unavoidable by the exercise of reasonable care? IF SO--NO NEGLIGENCE; or, was this a failure of a pennittee to prevent the occurrence of a violation due to indifference lack of diligence, or lack of reasonable care, the failure to abate any violation due to the same or was economic gain realized by the pennittee? IF SO--GREATER DEGREE OF FAULT THAN NEGLIGENCE.

No Negligence 0 Negligence 1-15 Greater Degree of Fault 16-30

ST A TE DEGREE OF NEGLIGENCE Negligence

ASSIGN NEGLIGENCE POINTS 12

PROVIDE AN EXPLANATION OF POINTS: *** The inspector indicated that the operator has defaulted twice on his payment plan. After the first default, the operator met with DOGM and provided a second date by which he would have the surety posted. The Operator had stated his intent to provide surety, but has failed to do so. Mining has been occurring for at least the last two years. This indicates indifference to the rules or lack of reason able care. A prudent operator would understand the need to provide adequate surety. No contact was made to the Division, to request additional time due to hardship. Points are assigned it midpoint of the upper half of the Negligence range.

IV. GOOD FAITH (Max 20 pts.) (R467-7-103.2.14)

(Either A or B) (Does not apply to violations requiring no abatement measures)

A. Did the operator have onsite, the resources necessary to achieve compliance of the violated standard within the permit area?

IF SO--EASY ABATEMENT

Easy Abatement Situation X Immediate Compliance -11 to -20*

(Immediately following the issuance of the NOV) X Rapid Compliance -1 to -10

(Permittee used diligence to abate the violation) X Normal Compliance 0

(Operator complied within the abatement period required) (Operator complied with condition andlor tenns of approved Mining and Reclamation Plan)

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* Assign in upper of lower half of range depending on abatement occurring the 1 st or 2nd half of abatement period.

B. Did the permittee not have the resources at hand to achieve compliance, or does the situation require the submission of plans prior to physical activity to achieve compliance?

IF SO--DIFFICULT ABATEMENT Difficult Abatement Situation

X Rapid Compliance -11 to -20* (Permittee used diligence to abate the violation)

X Nonnal Compliance -1 to -10· (Operator complied within the abatement period required)

X Extended Compliance 0 (Permittee took minimal actions for abatement to stay within the limits of the NOV or the violated standard of the plan submitted for abatement was incomplete) (Pennittee complied with conditions andlor terms of approved Mining and Reclamation Plan)

EASY OR DIFFICULT ABATEMENT? __ _

ASSIGN GOOD FAITH POINTS __ _

PROVIDE AN EXPLANATION OF POINTS: *** Tile abatement for t1lis violatioll has not been completed yet so good faith points cannot be assigned. The assignment of good faith can occur once the abatement requirements have been met and is contingent upon the Operator's diligence in achievillg compliance. This area will be evaluated again upon termination of the Cessation Order.

V. ASSESSMENT SUMMARY (R647-7-103.3)

NOTICE OF VIOLATION # MC-06-03-07-01 1. II. m. IV.

TOTAL HISTORY POINTS TOTAL SERIOUSNESS POINTS TOTAL NEGLIGENCE POINTS TOTAL GOOD FAITH POINTS TOTAL ASSESSED POINTS TOTAL ASSESSED FINE

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40 $ 2,200

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State of Utah DEPARTMENT OF NATURAL RESOURCES

"II( 1M n . R. S'I' UR

JOI'I \1. III "I S\I \.'. JIt. J I,', /r/U'I" JUI'( IIII'

Division orOi), (jItS and Mining <; .\11\ R.IU:IIIH:I( I

1II'I"l'Utllll {,Ia-,''''/lr

C~rtifi~d Return Receipt 7005 25700000 480 I 7113

Justin Farley United Stone and Design P.O. Box 909 Duchesne. Utah 8402 I

JOIl'li R. D.\/.\

November 13.2008

Subject : Failure to Abate Cessation Order and Withdrawal of Permit Approval, United Stone aJld Design, United Stone Quarry. S/047/0079, Uintah Count)', Utah

Dear Mr Farley:

The atlached Failure Co Abate Cessation Order is issued for failure (0 abate Cessation Order MC-2008-59-01. A mandatory minimum civil penalty of$750.00 per day until it is abated (for a maximum ofJO days) will be assessed, Continued mining operations at the site may result in a 'willful and knowlIlg' violatiol1, which can be assessed a penalty of up to $10,000 per day. Civil penalties may be recovered in a civil a..:llOn brought by the attorney g.:nera I of Utah at the request of the Board of Oil, Gas and Mining

On June 24, 2008, you received via certified mail, Cessation Order #MC-2008-S9-0 I, which was issued for failure to provide full reclamation surety for your United Slone Quarry (DOGM Pennit fI S/04910079) within the agreed schedule. To abate this violation. you were required to remit the remaining $7,200.{]O within a two-week period. To date, the Division has not received this payment.

Pursuant to UCA 40-8-16(b) and R647-J-III.I.II, effective immediately, the acceptance of your Notice of Intention to Conduct Small Mining Operations for the United Stone Quarry (DOGM File # 5/047/0079) IS withdrawn. You no longer have authority to conduct mining related activities or removal of product from the site. You are hereby directed to commence reclamation of your site in a timely manner ':lJ1d have reclamation work completed within 90 days. Failure to complete reclamation may result in additional enforcement action.

The Division is taking this action at this time, since you have failed to provide the required rec lamation surety for th is site. This action does not negate any obi igation YOll may currently have for remitting permit fees. abating outstanding violations, or payment of assessed civil penalties for violations or cessation orders.

1594 West Nonh TempI<. SUlle 1210. PO flox 145801_ Sail Lake CII'. LJT 8411~-.\Rl) I telephone (80115J8-53~(I. faCSimile (ROil J5c)·3~40. TIY IROI) 538·7458. ,,,,.,, 08'" lIIah.gO'

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Page 2 Justin Farley S/04710079 November 13, 2008

As per UCA 40-8-16(3) and R647·3·111, 1.11, you have a right to appeal this action and request a formal hearing on the matter, To do so, you must file a written requeslto appeal within 10 days of your receipt of this notice .

Corllact 10 lie Carter, Administrative Secretary, at (RO I) 538·5277, if you wish to exercise your right to appea l th is dec ision before the Board orOil, Gas and Mining. She can provide you with appropriate guidance and assistance in preparing your formal Hearing request. Your failure to file such a request may preclude you from further participation, appeal, or judicial review with regard to this action . (f you choose not to appeal th is propo ed Notice of Agency Action , the Division ' s decision will become final.

(fyou have any questions regarding this Notice you may contact me at (801) 538·5320, or Paul Baker 538·5261.

DD:lk :vs cc :

StCYC Alder. Altorney General's Office Paul Raker, DOGM Leslie Heppler, DOOM

Dana Dean, P.E. Associate Director, Mining

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~Jj Citation for Non-Compliance Citation #: M C ~2008~59-02

Utah Minerals Regulatory Program Permit Number: S0470079 1594 West North Temple, Salt Lake City, UT 84114

~I\."'."l.'" Phone: (801) 5)8-5340 Fax: (801) 359-3940 Oate Issued: 11/13/2008

D NOTICE OF VIOLA nON I [ J CESSATION ORDER (CO) I [/J FAILURE TO ABATE CO

I'ermillr~ NMme: United Stone & Design lupccl()r II) IUId :'-lumber: 59

.\tint ~lImt : United Stone Ihlt o(ln~pf~li()n; NA C'tr1ified Relurn Receipl '<LImber: Ihlt lid'" Time of Sen' i~r :

_ ~~I~.~~ .I!r .c_o~~i_t~~~,. p.~~c!lc~. _~~ .vil~I.~~i.~n .: ....... . . . . . . .... . . ... . ... " ...... ............ .. . .. ... .... ............... . . .....

Failure to abate cessation order MC-2008-59-0 I

~~o\lision5 or Act, rtt;ulllt.ions. or ~rmil viol.1I1.~~:

R647-6-I02 . 1.14

For Cessation Orders and Failure 10 Abate CO' s, check appropriate box(es l below:

~ This order requires Cessation of ALL mining activities. Or

This order requires Cessation of PORTION(S) of the mining activities. . ~i.~~~.IL~~_t!~.i_t~~. ~~.~.~~.~~~.i.~~~!~.t~.Iy': ... .... _ .. .. .. ..... . ..... . _ .... . .. ... ........ _ ........ . . .. ............ __ _ . ... ... .. . ......

All mining related activity

D Condition. practice, or violat ion is creating an D Permittee/Operator islhas been conducting mining imminent danger to health or safety of the public. aClivities without it Pennil .

D Condition, practice. or violation is causing or can [ZJ Permittee has failed to abale Violation included in

reasonably be expected to cause significant, imminent Citation Ii MC-2008-S9-01 within lime for env ironmental hann to land. air, or waler resources.

abatement originally fixed or subsequently extended.

.~_~,I!~.t:~~~~/cQ~re<: ~.iv~ .. ~~tion ~lrl!q u.i.~~JfQ!_.~,.~.~.!.~~!ions .: ...... _ .... _ .. _ .... _ ...... Abatement Times (ifapplicable) . .. ~ ...... _--.. _ ... _...... . .. -.~~ .............. Reclaim all surface disturbance related to your mining.

Leslie Heppler - Environmental Scientist Pennl!tcc Repre",nlallVC (Prin!)

'ZZ .~ ..-<-- .J' ~ ~ --11113/2008

Permittee Representative's Signature Dale ~M Represe"!.tluv~SIgt1filure Dale

SEE REVERSE SIDE Qf This Form FoYlnslruclions And Additional/n/ormation

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EXHIBITM

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State of Utah

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DEPARTMENT OF NATURAL RESOURCES MlCUAI!LR- STVL.RR

JON M. HUNTSMAN, JR(JQvtf.,.U'

GARY R HKkBKRT

Dh'ililon or 011, Gas and Mining JOltNR DAZA

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CERTIFIED RETURN RECEIPT 7005257000004801 6744

Justin Farley United Stone and Design PO Box 99 Duchesne, Utah 84021

October 20, 2009

Subject: Finalized Assessment for State Failure to Abate Cessation Order No. MC-2008-59-02, United Stone and Design, United Stone Mine, S/047/0079, Uinta County, Utah

Response Due By: 30 Days of Receipt

Dear Mr. Farley:

The undersigned has been appointed by the Division of Oil, Gas & Mining as the Assessment Officer for assessing penalties under R647-7.

On May 20, 2009, a proposed assessment for this violation of $6,000 was sent to you. You received this assessment on, or about May 27,2009. In order to appeal the amount of this assessment, you had 30 days to provide a request to re-evaluate the amount of penalty. On June 25,2009, you left a voice message with Paul Baker, indicating that the abatement work was completed in just two days, rather than the 8 days that were assumed for the proposed assessment. Since the violation has been abated, this infomlation was considered in the final assessment. The finalized penalty assessment of $1 ,500.00 for the Failure to Abate Cessation Order # MC-2008-59-02, (FTACO) which was issued November 13, 2008 was detemlined utilizing Rule R647-7-103 el. seq. as follows:

Effective date of the FTACO: December 8,2008 (date the FTACO was served) Effective date of Abatement: December 10, 2008 (Abatement was completed on this date according to voice message received June 25, 2009) The FT ACO was in effect for 2 days. Proposed assessment: $1,500.00 (minimum mandatory assessment of $750.00 (per day) .

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Page 2 Justin Farley S/047/0079 October 20, 2009

Under R647-7-106, there are two informal appeal options available to you. You may appeal the 'Fact of the Violation', the proposed civil penalty, or both. If you wish to informally appeal you should file a written request for an Infomlal Conference within thirty 30 days of receipt of this letter with Vickie Southwick of the Division.

The informal conference will be conducted by a Division-appointed Conference Officer. The informal conference for the fact of the violation is distinct from the informal assessment conference regarding the proposed penalty. If you wish to review both the fact of the violation and proposed penalty assessment, you should file a written request for an Assessment Conference within thirty- (30) days ofreceipt of this letter. fryou are also requesting both a review of the fact of violation, and the proposed penalty, the assessment conference will be scheduled immediately following the review of the fact of the violation.

If a timely request for review is not made, the fact of the violation will stand, the re-assessed penalty will become final, and tbe penalty will be due and payable within thirty- (30) days of the date of this proposed assessment (by June 22, 2009). Please remit payment to the Division in care of Vicki Bailey.

I.K :vs cc : Vicki Baiky. Accounting

Vi,:klc SouthWICk, Exec. Sec.

Sincerely,

Lynn Kunzler Assessment Officer

O:\M047· Uintah\S04 70079-IJllitedStone\nono(:ompliance\MC -2008· S(}·02\REAssess· 2760·05202009.doc

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F I LED - Utah · PDF filef i led apr t 5 2013 secretary, board of oil, ... board of oil, gas & mining ... permit number: m0470079

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