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SETTLEMENT AGREEMENT JUSTIFICATION Oxbow Mining, Inc. Sanborn Creek Mine- Permit Number C-81-022 Notice of Violation # CV-2001-008 James B. McArdle, Conference Officer °J~`A The Notice of Violation CV-2001-008 was issued on April 20, 2001. The NOV was issued for the following problem; 'Failure to submit, for Division approval, designs for temporary impoundments before construction of the mud pit impoundments. On June 29, 2001, an Assessment Conference was held at 1313 Sherman Street, Room 215, Denver, Colorado. In attendance, in addition to the Conference Officer, was Mr. Joseph Dudash and Mrs Sandra Brown representing the Division and Ms. Kathleen Welt of Oxbow Mining, Inc.. Joseph Dudash presented testimony outlining the details of the violation as outlined above. Oxbow Mining submitted MR-16 indicating the location of two mud pits. Three pits were actually excavated. The revision did not indicate that the pits would have embankments which would aid in the retention of fluids and mud. Ms. Kathleen Welt stated that Oxbow and the drillers considered the mud pits to be pits and not ponds. The Proposed Civil Penalty by the Assessment Officer for NOV CV-2001-008 is: History $00.00 Seriousness $500.00 Fault $500.00 Number of Days Penalty Assessed 1 Good Faith 0 After hearing this testimony and considering the evidence presented, I have come to the following conclusions: History A $0.00 penalty is appropriate for history. Seriousness I concur with the Assessment Officer that a violation did occur and that the violation was moderate in seriousness, a penalty of $500.00 is appropriate. Fault I concur with the Assessment Officer and believe that a penalty of $500.00 is appropriate for negligence,