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S~~I~ATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Department of Natural Resources 131 3 Sherman St., Room 215 Denver, Colorado 80203 Phone: 1303) 8663567 FAX. Q03) 812-8106 SETTLEMENT AGREEMENT JUSTIFICATION Golden Eagle Mine-Permit Number C-1981-013 Notice of Violation # CV-2000-009 James B. McArdle, Conference Officer ~~ ~~ DIVISION OF M[NERAL~ GEOLOGY REC LA MAi10N MINING•SA FE TY Bil I Owens Governor Greg E. Walther Execmive Dneetor hfi<hael B. Long Division D~reaor The Notice ofViolation CV-2000-009 was issued on November 1, 2000 after a site inspection conducted on October 25, 2000. The NOV was issued for a failure to prevent adverse effects of mining operations; fai]ure to conduct underground mining activities to prevent subsidence from causing material damage to the surface, to the extent technologically and economically feasible, so as to maintain the value and reasonably foreseeable use of surface lands. On January 9, 2001, an Assessment Conference was held at 1313 Sherman Street, Room 215, Denver, Colorado. In attendance, in addition to the Conference Officer, was David Berry and Steve Brown representing the Division, Bob Montgomery and Scot Anderson representing Basin Resources and on the speaker phone were the landowners Jim and Ann Tatum wi[h Walton Morris representing the landowners. Mr. David Berry presented testimony and documentation in the form of the NOV and photo's showing recent damage to a residence, pasture and water line. Mr. Berry also pointed out that both the District Court and IBLA previously ruled that coal mine subsidence had damaged the residence. The Division was contacted by the landowner regarding new damage that was not addressed by the prior rulings. The Division issued the Notice of Violation based upon new damage to the house and a domestic water line. The state did direct Basin resources to repair the water line and this repair was completed with due diligence. The Damage inspected by the Division was consistent with prior damage. Mr. Berry recommended that the Conference Officer find that the NOV was reasonable and proper. The Proposed Civil Penalty by the Assessment Officer for NOV CV-2000-009 is: History $00.00 Seriousness $1250.00 Fault $750.00 Number of Days Penalty Assessed 1 Good Faith 0 Mr. Scot Anderson disputed the fact of the violation. Cosmetic repairs were completed in the 1993-1995 time frame. The repair of the pipeline occurred as soon as was possible. Mr. Anderson stated that Basin and the courts are in disagreement regarding the cause of the damage. Mr. Anderson further stated that Basin has compensated the owners in the amount of $40,000