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STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Depanmenl of Natural Resources 1313 Sherman St., Room 215 Denver, CO 80203 Phone: (303) 866-1567 FAX: (30318328106 Settlement Agreement Notice of Violation N~ C-96-016 PermiW: C-94-082 Mine: Yoast Mine Permittee: Seneca Coal Company Address: P.O. Drawer D, Hayden, CO 81639 County: Routt Type of Mine: Surface/Federal os'~ota ti6~ we. I B'16~, Roy Ramer Governor Michael B. LOng Divrs~on Director The Colorado Division of Minerals and Geology (DMG) issued a Notice of Violation (NOV) on July 31, 1996. On Aug. 27, 1996 the DMG issued a Notice of Proposed Amount of Civil Penalty and the operator requested a conference as authorized by C.R.S. 34-33-123(8). The conference was held on September 30, 1996. As a result of the conference, the DMG and the operator hereby agree that: 1. The amount of the penalty based on the seriousness of the offense shall be $750.00. a. The operator changed the location of a road to a topsoil containment azea without revising its permit. When notified of the violation a permit revision was submitted and approved within one week. No signifirznt environmental damage resulted from the operator's actions. Therefore, the penalty for seriousness shall be reduced from $1000 to $750. 2. The amount of the penalty based on fault shall be $250.00. a. The failure to get a permit revision occurred because on- site officials decided to change the location of the road which was planned by company officials in Flagstaff, Arizona. DMG officials recommended that a civil penalty of $750.00 for negligence be imposed. However, once company ofFcials were notified of the violation, the problem was quickly resolved. The NOV was also terminated prior to the conference. Therefore, a good faith credit for rapid compliance shall be given in the amount of $500.00, resulting in a $250.00 penalty.