ENFORCE26685

• Permit No: C1980004
• IBM Index Class Name: Enforcement
• Doc Date: 5/25/1979
• Doc Name: PENALTY MITIGATION INFORMATION PERTAINING TO OSM NOV 79-V-1-12
• From: SHERIDAN ENTERPRISES INC
• To: OSM
• Violation No.: TD1979040001012TV1
• Media Type: D
• Archive: No

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'~HFRIDAN EN~RPRISES
:j'74 5 East Hampden Avenue
NO. 350
DE:'nver, Colorado 80231
Telephone [phone]
May 17, 1979
Assessment Office
Office of Surface Mining
United States Department of the Interior
1800 C Street, N.W,
Washington, D.C. 20240
fA~',!=^ LAND REpLAPo'~
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RE: Penalty Mitigation Information Pertaining to Office of
Surface Mining Notice of Violation No. 79-V-1-12 _
Gentlemen and Ladies:
On May 9, 1979, Thomas E. Emmett, an inspector with the Office of
Surface Mining ("OSM") for Region V, visited Sheridan Enterprises,
Inc.'s ("SEI") McClane Canyon exploration site located in Garfield
County, Colorado. The McClane Canyon site is an underground ex-
ploration operation on federal coal deposits which are under lease
to SEI. The exploration operation is conducted pursuant to an
exploration plan which was approved by the United States Geological
Survey ("USGS") with an appropriate concurrence by the Bureau of
Land Management ("BLM"). The plan was approved in November, 1976
and made effective December 1, 1976.
SEI has been in continual communication with the USGS, the BLM and
the Mined Land Reclamation Staff, Department of Natural Resources,
State of Colorado ("MLR") regarding all exploration activities and
has always been receptive to suggestions and has cooperated with
each of the agencies concerned.
Based upon such contact with the above agencies, it was SEI's
reasonable belief that it was operating in accordance with all
applicable statutes, rules and regulations of the respective
agencies.
At no time, prior to the issuance of the notice of violation, was
SEI ever advised that the exploration plan was invalid, or'that
we were considered to be a mining operation and we, therefore,
operated in good faith in accordance with the approved plan. Every
effort was made to keep all appropriate agencies informed of our
activities and to operate pursuant to each agency's guidelines.
The violations served May 10, 1979 are based on an OSM conclusion
that the activity in McClane Canyon is a "mining" operation. This
conclusion was arrived at without ever conferring with SEI.
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riAY 2 ~ 1979