2017-09-26_ENFORCEMENT - C1981014 (4)

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SETTLEMENT AGREEMENT JUSTIFICATION Permit No. C-1981-014 CV -2017-002 / CO -2017-002 Page 2 of 3 On August 17, 2017, the Division received a request for an assessment or settlement conference, as provided under C.R.S. 34-33-123(8), signed by John Adams on behalf of the "former Operator", Energy Fuels Coal, Inc., dated August 15, 2017. On September 13, 2017, an Assessment Conference was held at the office of the Division at 1313 Sherman Street, Room 215, Denver, Colorado. The conference was attended by the Conference Officer; Mr. Jim Stark and Mr. Zach Trujillo for the Division; Mr. John Adams and Mr. Kent Gorham for the "former Operator", Energy Fuels Coal, Inc.; Dr. Doug Corley and Ms. Carin Corley for the Corley Company; and Mrs. Andrea Corley, representing the landowner. The Assessment Conference addressed three violations, two in addition to the violation detailed herein, each with an associated cessation order and civil penalties totaling $120,000. Discussion during the conference was lively and heated. Mr. Stark and Mr. Trujillo provided background information regarding the nature of the violation(s) and opined the civil penalties were potentially uncollectable due to the fact the penalties were assessed against a dissolved corporation. Mr. Stark asserted, in the interest of conserving public funds the State of Colorado should waive the civil penalties, as opposed to pursuing such penalties through costly and potentially fruitless litigation efforts. Mr. Stark acknowledged the unabated violation(s) would result in revocation of the permit and forfeiture of the financial warranty. Mr. Stark expressed confidence in the adequacy of the existing $10,000 financial warranty as sufficient to ensure the completion of reclamation of the remaining 1.45 acres affected lands. Mr. Adams and Mr. Gorham summarized the historical events leading to the three violations. Mr. Adams confirmed Energy Fuels Coal, Inc. had been liquidated in December 2016. Mr. Adams identified three other coal mining operations, permitted and operated by Energy Fuels Coal, Inc. and located within Colorado, whereby the Operator has successfully completed reclamation and attained the Division's approval of full release of warranties and termination of the permits. Mr. Adams asserted reclamation of the remaining 1.45 acres affected lands at the Southfield Mine has been completed but termination of the permit is forestalled by a 10 -year period required under the reclamation statute, rules and regulations. Mr. Gorham provided photographs of the 1.45 acres, which illustrated the positive progress of reclamation. Mr. Adams indicated the landowner at the Southfield Mine had required $25,000 per year from the Operator to maintain a right to enter to complete reclamation. Mr. Adams stated the resources of the Operator have been exhausted and prior to the liquidation of the corporation he remained as the sole employee. Thus, he had no resources to maintain or re -acquire legal right to enter with the landowner. Dr. and Mrs. Corley, and their daughter, Ms. Carin Corley, raised opposition to the statements and characterizations made by Mr. Adams, Mr. Gorham and the Division. The Corley's asserted reclamation had not been completed and feared the $10,000 financial warranty would prove insufficient to complete reclamation. The Corley's also provided photographs of the 1.45 acres