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STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Department of Natural Resources 1313 Sherman St., Room 215 Denver, CO A0203 Phone: 1703) 86G-5567 FAX: (3031832-8106 OF COQ we' O ~~Rb • ~ r8T6 Settlement Agreement Roy Romer Governor Michael B. Long Division Dveclor Notice of Violation N: C-96-015 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 The Colorado Division of Minerals and Geology (DMG) issued a Notice of Violation (NOV) on July 19, 1996. The DMG issued a Notice of Proposed Amount of Civil Penalty on Aug. 27, 1996 and the operator requested a conference as authorized by C.R.S. 34-33-123(8). The conference was held on Sept. 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 built a light duty road to an electrical substation without revising its permit. When notified of the violation, a permit revision was submitted and sediment and drainage control measures were implemented. No significant 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 [hat 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, a good faith credit shall be given in the amount of $500.00, resulting in a penalty of $250.00.