2016-08-13_PERMIT FILE - P2016020 (2)

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49. Upon proper demonstration that the flows from the Extension Tunnel are being adequately addressed by the improvements contemplated and constructed within the London Mine Water Tunnel or are otherwise no longer emanating from the Extension Tunnel, MineWater may petition for a termination of the Extension Tunnel Permit. The Division will support said petition so long as it is satisfied that the flows from the Extension Tunnel are being adequately addressed via the London Mine Water Tunnel Facility. 50. All documents submitted under this Consent Order and Settlement Agreement shall use the same titles as stated in this Consent Order and Settlement Agreement, and shalt reference both the number of this Consent Order and Settlement Agreement and the number of the paragraph pursuant to which the document is required. CIVIL PENALTY 51. Based upon the factors set forth in 525-8-608(1), C.R.S., and consistent with Departmental policies for violations of the Act, and as contemplated herein (including and subject to the contingencies set forth below), MineWater shall pay Nine Hundred Twenty Five Thousand Dollars ($925,000.00) in civil penalties. The Division intends to petition the Executive Director, or his designee, to impose the Nine Hundred Twenty Five Thousand Dollars ($925,000.00) civil penalty and MineWater agrees to make payments towards this penalty in accordance with the following terms: within thirty (30) calendar days of the issuance of an Order for Civil Penalty by the Executive Director or his designee, MineWater shall make an initial payment of Two Hundred Thousand Dollars ($200,000.00) in civil penalties. For a period of three years, and on the anniversary of the execution of this Consent Order and Settlement Agreement, so long as additional water from the conditional portion of the London Mine Water Rights is perfected as absolute, MineWater will pay an additional Seventy Five Thousand Dollars ($75,000.00) in civil penalties annually to the Division in additional civil penalty payments (the "Annual Payments"). The sum of the Annual Payments shall not exceed a total of Two Hundred Twenty Five Thousand Dollars ($225,000.00), shall be paid without interest, and payment of the same shall be contingent upon the subsequent entry of a Water Court decree perfecting a minimum of at least 2 c.f.s. of the London Mine Water Rights (over and above the existing absolute decreed amounts for said London Mine water right. To the extent a triggering event under the Purchase and Sale Agreement occurs relative to the payment of water royalties (but not mineral royalties) to the Estate or the beneficiaries of the Estate, before any such water royalty payments are made, MineWater wilt make a final lump sum payment to the Division in the amount of Five Hundred Thousand Dollars ($500,000.00) in civil penalties. Said final lump sum payment shall be paid without interest. Upon payment of said final lump sum payment to the Division, no additional civil penalty payments shalt be due under this Consent Order and Settlement Agreement. The Division intends to petition the Executive Director, or his designee, to impose the civil penalty fine for the above violations) as contemplated herein, and MineWater agrees to make the initial payment within thirty (30) calendar days of the issuance of a Penalty Order by the Executive Director or his designee consistent with the triggering events contemplated herein. Method of payment shall be by certified or cashier's check drawn to the order of the "Colorado Department of Public Health and Environment," and delivered to: Kelly Morgan Colorado Department of Public Health and Environment Water Quality Control Division Mail Code: WQCD-CWE-B2 4300 Cherry Creek Drive South Denver, Colorado 80246-1530 London Mine, LLC, et at. C O L O R A D O Compliance Order on Consent and Settlement Agreement Department of Public P g Page 12 of 23 A17 Health&Environment