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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department o(Natural Resources <br />1313 Sfierman St., Room 215 <br />Denver, Colorado 80203 D I v 15 1 o N o f <br />Phone: (3031 866-3567 ~ MINERAL S <br />FAX: (3031 831-8106 & <br /> GEOLOGY <br /> RECLAMATION <br /> MINING~•SA FETY <br />Bill Owens <br />Governor <br />Greg E. Walther <br />Executive Director <br />Michael B. long <br />Division Direttor <br />SETTLEMENT AGREEMENT JUSTIFICATION <br />Lorencito Coal Company, LLC <br />Lorencito Canyon Mine-Permit No: C-1996-084 <br />Notice of Violation No: CO-2001-014 ~ <br />James B. McArdle, Conference Officer <br />The Cessation Order CO-2001-Oi 4 was issued oh October 26, 2001 based upon an inspection <br />performed by Mr. Bill York-Feirn, Mine Safety Program Supervisor, on October 25, 2001. The <br />Cessation Order was issued for the following problem; <br />'Conducting blasting operations without the supervision of a certified blaster who holds a valid <br />blaster certification issued by the State of Colorado. <br />On January 7, 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. Scott Harman of Buckley Powder Company. Kent presented <br />testimony outlining the details of the violation as outlined above. On October 25, 2001, Mr BiII <br />York-Feirn was informed that there was no one on site with a State of Colorado coal blasters or <br />shoffirers certification. On October 26, 2001, Bill issued a verbal order to Mr. Bentley and Mr. <br />Dannenberger that blasting operations at the site were to cease until properly certified officials in <br />the State of Colorado were on site and supervising blasting operations. Cessation Order CO- <br />2001-014 was issued on October 26, 2001 for failure to comply with provisions of Rule 4.08.1(3) <br />and Rule 6.01.3(2). <br />Mr. Scott Harman pointed out that Buckley Powder Company is the blasting contractor for <br />Lorencito Coal. Buckley Powder Company has been in the explosive business for 80 years and <br />has done a wide variety of blasting with the exception of blasting for coal mines. Scott stated <br />that his blasters have many years of experience with a wide range of mining and non-mining <br />related blasting activities with the exception of coal mines. James Phillips, certified blaster in <br />Colorado, was hired to supervise blasting activities at the Lorencito Canyon Mine from October <br />29 to November 3, 2001 while 3 Buckley Powder Company employees took the test to become <br />certified Coal blasters in the State of Colorado. Scott requested reduction in the penalty or good <br />faith consideration for hiring Jim Phillips and for having 3 employees take the certification test. <br />