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<br />4. Snowmass holds a mining and reclamation permit for the mine, <br />identified as C-81-025 (the "Mining Permit"), issued pursuant to the Colorado <br />Surface Coal ~fin.tng RecLamatioa Act (the "Mining Act"). The Piined Land <br />Reclamation Division ("NERD") has primary responsibility for enforcing the <br />provisLons of the Mining Act and the mining permit granted thereunder. <br />5. On June 17; 1986, the MLRD issued Notice of Violation No. C-8G-051 <br />("`4.RD Notice") to Snowmass. The PR.RD Notice resulted from the same <br />circumstances as the WQCD Notice and Order. The MLRD Notice is attached <br />hereto as Exhibit B and incorporated herein by reference. <br />6. The ~4.RD issued its Notice of Proposed Amount of Civil Penalty for <br />the MLRD Notice on July 15, 1985. Snowmass requested a conference on the MLRD <br />Notice and proposed civil penalty on July 28, 1986, which was held on August <br />28, 1986, with representatives of the MLRD, the WQCD and Snowmass attending. <br />7. On October 15, 1986, the MLRD issued to Snowmass a Notice and Order <br />to Pay Fixed Penalty with respect to the MLRD Notice. On November 14, 1986, <br />Snowmass filed its request for a hearing before the Colorado Mined Land <br />Reclamation Board as to whether the PB.RD Notice is valid and as to the amoun[ <br />of the fixed penalty, and paid $1,000.00 to be held in escrow pending the <br />outcome of that proceeding. <br />8. On January 12, 1987, the WQCD, MLRD and Snowmass entered into a <br />Stipulated Agreement ("Agreement") pursuant to which the parties agreed that <br />the WQCD would petition fnr the imposition of a $2,000 civil .penalty <br />("penalty") against Snowmass for the WQCD Notice and Order and the lfLRD <br />Notice. The $1000 held in escrow by the MLRD is to be applied toward the <br />$2,000 total penalty. A copy of the Agreement is attached hereto as Exhibit C <br />and is incorporated herein by reference. <br />9. Snowmass agreed to withdraw its request for a hearing on the [dQCD <br />Notice and Order and the MLRD Notice. <br />10. Pursuant to the terms of the Agreement, Snowmass agreed to pay the <br />$2,000 penalty to the State of Colorado within 30 days of the effective date <br />of the Agreement. <br />PENALTY REdJMMENDATION <br />On Che basis of the foregoing, the Division recommends Chat you now impose <br />a civil penalty of $2,000 against Snowmass, which amount shall be paid in Eul1 <br />within 30 days of the effective date of the Stipulated Agreement. <br />-2- <br />