May 9, 2005

Larry Gandy
Gandy Marley Inc. Landfarm
1109 East Broadway
Tatum, NM 88267

Dear Mr. Gandy.

This letter is to notify you that the above referenced facility is operating in violation of its Discharge Permit, DP-1041 which was issued by the New Mexico Environment Department (NMED) to Larry Gandy on August 24, 2000.

You are required by Section 20.6.2.3104 NMAC of the New Mexico Water Quality Control Commission Regulations (20.6.2 NMAC) to comply with the terms and conditions of this Discharge Permit, including the monitoring and reporting requirements which are summarized on the enclosed sheet. You have violated your Discharge Permit by failing to submit the monitoring reports which were due on September 1, 2000; December 1, 2000; March 1, 2001; June 1, 2001; December 1, 2001; March 1, 2002; June 1, 2002; September 1, 2002; December 1, 2002; June 1, 2003; September 1, 2003; December 1, 2003; March 1, 2004; September 1, 2004; December 1, 2004; and March 1, 2005.

In order to correct these violations, you must submit the past-due monitoring reports within thirty (30) days of the date of this letter.

Nothing in this letter shall be construed as relieving the permittee of its obligation to comply with all requirements in this permit and other applicable federal, state, and local laws, regulations, permits or orders. This letter is intended to address violations of certain requirements of your permit and may not address all violations. It is the responsibility of the permittee to be familiar with and comply in full with its discharge permit.

Notice of Non-Compliance, DP-1041
May 9, 2005
Page 2

This letter is NMED's attempt to gain your voluntary compliance. Failure to comply with this letter may result in the issuance of a compliance order, civil penalties, or the filing of a civil action in district court.

If you have questions regarding this matter, please contact me at 505-827-2919 or George Schuman, Program Manager of the Ground Water Pollution Prevention Section, at 505-827-2945.

Sincerely,

William C. Olson
Bureau Chief
Ground Water Pollution Prevention Section

Enc:  Discharge Permit Monitoring Summary

cc:  Carlos Romero, District Manager, NMED District IV
       NMED Hobbs Field Office