ENFORCE26898

• Permit No: C1981038
• IBM Index Class Name: Enforcement
• Doc Date: 5/31/2001
• Doc Name: NOTICE OF PROPOSED AMOUNT OF CIVIL PENALTY REQUEST FOR CONFERENCE NOV CO CV-2000-013
• Violation No.: CV2000013
• Media Type: D
• Archive: No

Proposed Civil Penalty Assessment
Bowie Resources Ltd /The Bowie #1 Mine
DMG Permit No. C-81-038
NOV CV-2000-013
Date NOV issued: 12/20/00
Dale NOV submitted for proposed assessment: I/18/Ol
Date proposed assessment prepared: 1/21/01
Materials reviewed in conjunction with the preparation of this proposed civil penalty assessment were:
I. Copy of DMG NOV CV-2000-013, dated ]2/20/00, including transmittal cover letter;
2. Copy of letter dated 12/28/00 from Keith Sieber to David Betty;
3. Copy of letter dated I/5/01 from UBS Warburg AG to DMG transmitting Irrevocable Letter of Credit;
4. Copy of DMG NOV Extension Notice dated I/8/01;
5. Letter dated I/8/Ol from Keith Sieber to David Berry;
6. Copy of letter dated (/12/01 from UBS Warburg AG to DMG amending Irrevocable Letter of Credit;
7. Copy of letter dated 1/18/01 from David Betty to Keith Sieber.
History [Rule 5.04.5(3)(a)]:
No NOVs have been issued to Bowie Resources Ltd ("Bowie") at the Bowie #1 Mine within the
twelve month period immediately preceding the date of issuance of the current NOV.
The History component of this assessment is therefore proposed at $0.
Seriousness [Rule 5.04.5(3)(b)J:
The Seriousness component of a proposed civil penalty assessment may range from $0 to $1750.
The amount assessed for Seriousness depends upon whether the permittee failed to comply with
an administrative standard or a performance standard. This NOV appears to have been written as
a failure to comply with the performance standards of CRS 34-33-I 13 and Rules 3.01, 3.02.1,
3.02.2, and 3.02.4(2)(b) requiring the maintenance of appropriate reclamation performance bonds.
In the case of a permittee's failure to comply with performance standards, the amount of the
Seriousness component is based upon two additional factors: (I) the probability of the occurrence
of the event which the violated standard is designed to prevent, and (2) the duration and extent of
the actual or potential damage in terms of area and impact upon the public and the environment.
(I) Rules 3.01, 3.02.1, 3.02.2, and 3.02.4(2)(b) and CRS 34-33-I 13 are, among other things,
designed to prevent the people of the State of Colorado from assuming the mined land
reclamation liabilities of coal mining operators. The rules attempt to prevent this by requiring
Colorado coal mining operators to maintain appropriate reclamation performance bonds.
Bowie's failure to replace its bond for the Bowie # I Mine as requested by DMG created the
probability that DMG may have to forfeit Bowie's faulty bond and reclaim the disturbances
associated with the Bowie # I Mine's operations. Since this did not occur, the situation is
deemed to be moderately serious.
(2) The extent of the disturbed area at the Bowie # I coal mine that DMG may have to reclaim is
estimated at 140 acres.
The Seriousness component of this assessment is therefore proposed at $500.