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SETTLEMENT AGREEMENT JUSTIFICATION <br />Colowyo Coal Company L.P. <br />Colowyo Coal Mine- Permit Number C-81-019 <br />Notice of Violation # CV-2001-011 <br />Carl B. Mount, Conference Officer <br />The Notice of Violation CV-2001-011 was issued on May 16, 2001. The NOV was issued for the <br />following problem; <br />'Failure to conduct coal mining operations as approved by DMG via permit No. C-81-019; <br />Implementing a technical revision before obtaining final approval. <br />On July 18, 2001, an Assessment Conference was held via telephone at 1313 Sherman Street, <br />Room 215, Denver, Colorado. In attendance, in addition to the Conference Officer, was Mr. <br />Dan Hernandez representing the Division of Minerals and Geology (Division) and, via telephone, <br />Mr. James Kiger and Mr. Steve Hinkemeyer of Colowyo Coal Company L.P. (Colowyo). Dan <br />Hernandez presented testimony outlining the details of the violation as outlined above. Colowyo <br />presented reasons for limiting or eliminating the civil penalty of $1,500.00 initially assessed for <br />the violation. These reasons pertained to seriousness of the violation, fault and good faith <br />efforts conducted by Colowyo. <br />The Proposed Civil Penalty by the Assessment Officer for NOV CV-2001-008 is: <br />History $00.00 <br />Seriousness $1000.00 <br />Fault $500.00 <br />Number of Days Penalty Assessed 1 <br />Good Faith 00.00 <br />Total Penalty Proposed $1500.00 <br />After hearing this testimony and considering the evidence presented, I have come to the <br />following conclusions: <br />HIStON <br />A $0.00 penalty is appropriate for history. <br />Seriousness <br />I differ with the Assessment Officer in that, under Rule 5.04.5, the duration and extent of the <br />potential or actual damage in terms of area was low or moderate given that an area 100' long by <br />an average 20' wide area of coal was excavated. Also, no off-site damage occurred and mining <br />was done in a manner that would be considered normal operating conditions for the mine. <br />However, I concur that a violation did occur but think that the violation was Low/Moderate in <br />seriousness and propose that a penalty of $500.00 is more appropriate. <br />