ENFORCE21685

• Permit No: C1981038
• IBM Index Class Name: Enforcement
• Doc Date: 4/16/2001
• Doc Name: NOTICE OF PROPOSED AMOUNT OF CIVIL PENALTY REQUEST FOR CONFERENCE NOV CO CV-2001-006
• Violation No.: CV2001006
• Media Type: D
• Archive: No

Proposed Civil Penalty Assessment
Bowie Resources Ltd /The Bowie #1 Mine
DMG Permit No. C-81-038
NOV CV-2001-006
Date NOV issued: •!/13/01
Date NOV submitted for proposed assessment: 5/4/01
Date proposed assessment prepared: 5/14/01
Materials reviewed in conjunction with the preparation of this proposed civil penalty assessment were:
1. Copy of Colorado Division of Insurance Summary Suspension Order, signed 3/14/01;
2. Copy of DMG NOV CV-2001-006, dated 4/13/01;
3. Copy of letter dated 5/1101 from David Berry to Keith Sieber (Bowie Resources Limited) and Michael
Nemser (AEI Resources, Inc).
History [Rule 5.04.5(3)(a)]:
Two NOVs have been issued to Bowie Resources Ltd ("Bowie") at the Bowie #1 Mine within the
twelve month period immediately preceding the date of issuance of the current NOV. One of
these NOVs has been terminated. The other NOV has not yet proceeded through the appeals
process.
The History compooent of this assessment is therefore proposed at $50.
Seriousness [Rule 5.04.5(3)(6)]:
The Seriousness component of a proposed civil penalty assessment may range from $0 to $1750.
The amount assessed for Seriousness depends upon whether the permittee failed to comply with
an administrative standard or a performance standazd. This NOV appears to have been written as
a failure to comply with the performance standards of CRS 34-33-113 and Rules 3.01, 3.02.1,
3.02.2, and 3.02.4(2)(6) requiring the maintenance of appropriate reclamation performance bonds.
In the case of a permittee's failure to comply with performance standards, the amount of the
Seriousness component is based upon two additional factors: (I) the probability of the occurtence
of the event which the violated standard is designed to prevent, and (2) the duration and extent of
the actual or potential damage in terms of area and impact upon the public and the environment.
(I) Rules 3.01, 3.02.1, 3.02.2, and 3.02.4(2)(b)and CRS 34-33-113 are, among other things,
designed to prevent the people of the Stau: of Colorado from assuming the mined land
reclamation liabilities of coal mining operators. The rules attempt to prevent this by requiring
Colorado coal mining operators to maintain appropriate reclamation performance bonds.
Bowie failed to replace its bond for the Bowie #I Mine following the Colorado Division of
insurance's 3/14/01 Order to suspend Frontier Insurance Company's Certificate of Authority.
Bowie's inaction created the probability that DMG may have to forfeit Bowie's faulty bond
and reclaim the disturbances associated with the Bowie #I Mine's operations. Since this did
not occur, the situation is deemed to be moderately serious.
(2) The extent of the disturbed area at the Bowie # I coal mine that DMG may have to reclaim is
estimated at 140 acres.
The Seriousness component of this assessment is therefore proposed at $500.