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

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SCOPE AND EFFECT OF CONSENT ORDER AND SETTLEMENT AGREEMENT 55. The Parties agree and acknowledge that this Consent Order and Settlement Agreement constitutes a full and final settlement of all claims, orders, directives and violations alleged herein and in the NOV/CDOs, No. 10-090715-1, No. 10-130321-1, and No. 10-150730-1 and any potential penalties against any Party associated with water discharges from the London Mine Water Tunnel or London Mine Extension Tunnel arising or occurring prior to and as of the effective date of this Consent Order and Settlement Agreement. 56. This Consent Order and Settlement Agreement is subject to the Division's "Public Notification on Administrative Enforcement Actions Policy," which includes a thirty day public comment period. The Parties each reserve the right to withdraw consent to this Consent Order and Settlement Agreement if comments received during the thirty day period result in any proposed modification to the Consent Order and Settlement Agreement. 57. This Consent Order and Settlement Agreement constitutes a final agency order or action upon a determination by the Division following the public comment period. Following the closing of the transaction contemplated in the Purchase and Sale Agreement, any violation of the provisions of this Consent Order and Settlement Agreement by MineWater, including any false certifications, shall be a violation of a final order or action of the Division for the purpose of 5 25-8-608, C.R.S., and may result in the assessment of civil penalties of up to ten thousand dollars per day for each day during which such violation occurs. 58. The Parties' obligations under this Consent Order and Settlement Agreement are limited to the matters expressly stated herein or in approved submissions required hereunder. All submissions made pursuant to this Consent Order and Settlement Agreement are incorporated into this Consent Order and Settlement Agreement and become enforceable under the terms of this Consent Order and Settlement Agreement. 59. The Parties agree and acknowledge that this Consent Order and Settlement Agreement provides no relief or resolution for Water Tunnel Permit effluent violations that may occur after September 30, 2018; provided, however, that in such an event neither London Mine LLC, the Estate, the Personal Representative, Meyer, THE nor PCMD#9 shall have any liability for such violations. 60. The Division's and/or the Water Quality Control Commission's approval of any submission, standard, or action by MineWater under this Consent Order and Settlement Agreement shall not constitute a defense to, or an excuse for, any prior violation of the Act, or any subsequent violation of any requirement of this Consent Order and Settlement Agreement or the Act. 61. Notwithstanding the above, the violations and alleged violations described in this Consent Order and Settlement Agreement will not constitute part of MineWater's compliance history for purposes where such history is relevant. This includes considering the violations described above in assessing a penalty for any subsequent violations against MineWater. Since MineWater has no relation to London Mine, LLC prior to closing, London Mine, LLC's past compliance history, or lack thereof, shall not be used by the Division in any subsequent violation penalty calculations related to MineWater's activities, if any. 62. MineWater shall comply with all applicable Federal, State, and/or local laws in fulfillment of its obligations hereunder and shall obtain all necessary approvals and/or permits to conduct the activities required by this Consent Order and Settlement Agreement. The Division makes no representation with respect to approvals and/or permits required by Federal, State, or local laws other than those specifically referred to herein. London Mine, LLC, et al. COLOR A D O Compliance Order on Consent and Settlement Agreement e® Department of Publi Page 14 of 23 Health 6 Environment