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metallurgical uses. The New Elk Mine has a wash plant and waste disposal <br /> facilities that would be critical for successful operation of the Lorencito Canyon site. <br /> CONCLUSIONS OF LAW <br /> 13. The Board has jurisdiction over this matter pursuant to sections 34-33- <br /> 123(7) and 34-33-124(4) of the Colorado Surface Coal Mining Reclamation Act <br /> ("Act") and Rule 5.03.3(3) of the Regulations of the Colorado Mined Land <br /> Reclamation Board for Coal Mining ("Rules"). <br /> 14. The Division and Board have the full power and authority to carry out <br /> and administer the provisions of this article. § 34-33-104, C.R.S. <br /> 15. Under section 34-33-110(5), C.R.S., and Rule 2.03.9, a permitee must <br /> obtain, and maintain for the life of the permit, a public liability insurance policy in <br /> adequate coverage amounts "to compensate any persons injured or property <br /> damaged as a result of surface coal mining and reclamation operations...." <br /> Operators must provide the Division with a certificate certifying compliance with <br /> this requirement. Rule 2.03.9. The Operator failed to provide the required <br /> certificates for the permits despite receiving notice of the violations and failed to <br /> abate those violations. <br /> 16. Pursuant to Rule 5.03.3(1), the Division shall issue an order to show <br /> cause why a permit should not be suspended or revoked when it determines that a <br /> pattern of violations exists that were caused by the unwarranted failure of the <br /> permitee to comply with any requirements of the Act or Rules. The Division <br /> determined that a pattern of violations by the Operator existed and issued an order <br /> to show cause to the Operator for the violations at the Lorencito Canyon and New <br /> Elk mines. <br /> 17. Section 34-33-124(4), C.R.S. and Rule 5.03.3(3) require the Board to <br /> provide an opportunity for public hearings on show cause orders issued by the <br /> Division. Specifically, Rule 5.03.3(3)(a) gives permitees an opportunity to file <br /> written responses to orders to show cause and request Board review of the show <br /> cause order. Should a permitee fail to file a response and request a review, the <br /> Board must make findings of fact and issue a written decision regarding the <br /> suspension or revocation of the permit. Rule 5.03.3(3)(b). Here, the Operator failed <br /> to respond to the order to show cause issued the by the Division and did not request <br /> a hearing. No evidence was presented to mitigate the violations or indicate that any <br /> action other than as requested by the Division is appropriate. <br /> New Elk Coal Company, LLC. <br /> New Elk Mine, Permit No. C-1981-012 <br /> Lorencito Canyon Mine, Permit No. C-1996-084 3 <br />