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SETTLEMENT AGREEMENT JUSTIFICATION <br />CO C-93-141 <br />Cessation Order C-93-141 was issued for "Blasting operations out <br />of compliance with agplicable State and federal laws, resulting <br />in damage to private property, loss of topsoil and disturbance to <br />the prevailing hydrologic balance. Failure to submit a plan to <br />protect the oil tanks and wells from damage by establishment of a <br />maximum allowable limit on ground vibration". Susan Burgmaier <br />issued the CO to Peabody Western Coal Company on October 16, 1993 <br />at the Seneca II-W Mine. Ms. Burgmaier explained that a <br />representative of the mine contacted her on the morning of <br />October 15, 1993 describing a blasting accident that had occurred <br />at 3:45 p.m. October 14, 1993. She described and showed pictures <br />of the flyrock from an overburden blast which ruptured an oil <br />tank and damaged associated structures, approximately 650 feet <br />away from the blast site. The surrounding berms broke allowing <br />oil from the tank to flow into the adjacent drainage (006 Gulch). <br />Initially, she was unsure how much oil had gone into the <br />drainage. Estimates went as high s 380 barrels, the capacity of <br />the tank. In addition, topsoil was damaged by flyrock from the <br />blast that travelled up to 1200 feet creating "craters" on <br />undisturbed sites. At the time of her inspection clean-up was in <br />progress. The berms had been reconstructed, oil flow into the <br />drainage had stopped and sphagnum peat moss was being spread on <br />the disturbed sites. All oil remaining oil in the tanks had been <br />pumped out. Ms. Burgmaier identified four separate citations <br />that were violated as a result of the blast. They are as <br />follows: <br />1. Damage to private property, the oil well and storage <br />tanks is in violation of Section 34-33-102 of the Colorado <br />Surface Coal Mining Act. <br />2. The loss and contamination of topsoil is in violation of <br />Rule 4.06.1(1) and 4.06.2(1) and (2). This was caused by <br />the flyrock "craters" on undisturbed areas. <br />3. Crude oil in gulch 006 caused disturbance to the <br />prevailing hydrologic balance in violation of Rule <br />4.05.1(1). <br />4. Rule 4.08.1(1) requires that each person who conducts <br />surface activities shall comply with all applicable State <br />and Federal laws in the use of explosives and requirements <br />of 4.08 in consultation with appropriate State agencies. <br />Therefore, 30 CFR 816.67(d) was cited for failure to submit <br />a plan to protect the oil tanks and wells from damage by <br />establishment of a maximum allowable limit on ground <br />vibration. <br />1 <br />