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<br /> <br />• ~ III IIIIIIIIIIIIIIII <br />SETTLEMENT AGREEMENT <br />This settlement is entered into this o'Z7"-'day of March, 1992 between <br />the Colorado Mined Land Reclamation Board ("the Board") and <br />American Shield Coal Company ("the operator"). <br />RECITALS <br />1. American Shield Coal Company has operated the Fruita No. <br />1 and 2 mines since 1986. The operator submitted a reclamation <br />plan for the mine site to the Division on November 20, 1989 in <br />response to an agreement with the Division. The reclamation plan <br />was subsequently approved by the Division. <br />2. The upper or Cameo bench of the Fruita Mine is located in <br />the bookcliffs area of Mesa County which qualifies as a "steep <br />slope" area under the Colorado Surface Coal Mining Reclamation Act. <br />The bench was constructed by Dorchester Coal Company under Colorado <br />permit number 79-60, prior to the adoption of the Colorado Surface <br />Coal Mining Reclamation Act. The upper or Cameo bench at the Fruita <br />mine site was constructed during the summer of 1977. Construction <br />of the bench was completed prior to August 3, 1977. <br />3. The operator performed reclamation work on the site in <br />compliance with the approved reclamation plan during the fall and <br />winter of 1990. Backfilling and grading was done in compliance <br />with the approved plan. The disturbed area was subsequently seeded <br />during the winter of 1990-91. <br />4. The Division approved a Phase I release of liability for <br />backfilling and grading on May 17, 1991. This release was approved <br />after a site inspection verified that the disturbed area had been <br />backfilled and graded in compliance with the approved reclamation <br />plan. <br />5. The operator reduced the bond held by the Division <br />following the bond release described in item three. The Division <br />currently holds a $36,000 performance bond for remaining <br />reclamation of the site. <br />6. The Office of Surface Mining Reclamation and Enforcement <br />("OSMRE") objected to the Division's decision to approve partial <br />bond release on the site based on the fact that the highwall had <br />not been eliminated. <br />7. On September 24, 1991, the Division issued NOV C-91-024 <br />to the operator for failure to reclaim to approximate original <br />contour and to eliminate all highwalls. <br />