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. III IIIIIIIIIIIII III STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Department of Nawral Resources 1313 Shermzn SL, Roam 215 Denver, CO 80203 Phune: (3031 R66~3567 FA%: (3031 R32 8106 Settlement Agreement Notice of Violation #: C-96-016 Permit#: 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 pF C02p ~C ' ~~ o-?+ RECE1 ~ ,6=~ NOV 0 7 nlichael B. Long Divismn Dnectur l;ivi9~ NO V n0 dl REC'O9Y 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: 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 area without revising its permit. When notified of the violation a permit revision was submitted and approved within one week. No signiFicant environmental damage resulted from the operator's actions. Therefore, the penalty for seriousness shall be redu~.:ed 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 officials were notified of the violation, the problem was quickly resolved. The NOV was also terminated prior to the conference. Therefore, good faith credit for rapid compliance shall be given in the amount of $500.00, resulting in a $250.00 penalty.