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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />SETTLEMENT AGREEMENT JUSTIFICATION <br />Lorencito Coal Company, LLC <br />Lorencito Canyon Mine-Permit No: C-1996-084 <br />Notice of Violation No: CV-2002-009 ~,//~ <br />James B. McArdle, Conference Officer~T^r <br />DIVISION O <br />MINERAL <br />IGEOLOG~ <br />REC LAMATIO <br />MINING•SAFETY <br />Bill Owens I <br />Governor <br />Greg E. Walther I <br />&ecudve Director <br />Ronald W. Cattany <br />Acting Divi<ion Director <br />The Notice of Violation CV-2002-009 was issued on June 17, 2002 for failure to conduct surface <br />blasting operations in accordance with the Colorado Surface Coal Mining Reclamation Act, <br />Regulations of the Colorado Mined Land Reclamation Board and the Division of Minerals and <br />Geology Permit. <br />On August 23, 2002, an Assessment Conference was held at 1313 Sherman Street, Room 215, <br />Denver, Colorado. In attendance, in addition to the Conference Officer, was Mr. Kent Gorham <br />representing the Division and Mr. Eric Addington, Manager for the Lorencito Canyon Mine. Kent <br />presented testimony outlining the details of the violation as outlined in a 5 page NOV attachment <br />detailing blasts 103-02, 104-02, 105-02, 106-02, 107-02 and 108-02. Additional details <br />pertaining to this NOV can be found in the Investigative Report prepared by Daniel Hernandez <br />on June 17, 2002. Essentially, blasts varied from the permit by maximum number of drill holes, <br />depth of drill holes, average weight of explosives per drill hole, total weight of explosives used in <br />the blast, blast pattern, use of a seismograph (without recent calibration), use of an electric <br />initiation system, and time delays, <br />Eric discussed the permit and pointed out that the company intended to provide a typical blast. <br />Not do each and every blast the same, as conditions varied across the permit area. It was noted <br />that the amount of explosives used was less than the permit would have allowed. Even though <br />the permit did not require a seismograph, the company put one out recognizing that the <br />calibration was out of date. <br />The Proposed Civil Penalty originally determined by the Assessment Officer for NOV CV-2002- <br />009 was: <br />History $650.00 <br />Seriousness $500.00 <br />Fault $750.00 <br />Number of Days Penalty Assessed 1 <br />Good Faith 0 <br />Total proposed penalty $1900.00 <br />