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. ;: <br />JUSTIFICATION OF SETTLEMENT AGREEMENT FOR <br />NOV C-88-009 <br />NOV C-88-009 was issued to American Shield Coal Company as an administrative <br />violation, on February 9, 1988, for "failure to maintain and post a mine <br />identification sign with current information including name, address, and <br />telephone number of the operator and identification number" at its Fruita <br />Mine. The abatement deadline was extended until April 15, 1988, at which time <br />abatement had been accomplished. <br />Greg and Jamie Fernette, representing the operator, American Shield Coal <br />Company, did not contest the facts of the violation. They did request a <br />reconsideration of the proposed penalty assessment. <br />The civil penalty assessment proposed by the Division Assessment Officer was: <br />History ZERO <br />Seriousness 5100.00 <br />Fault 250.00 <br />TOTAL PROPOSED CIVIL PENALTY: ;350.00 <br />The Fernettes requested that I reconsider the penalty assessment. They stated <br />that the operator had relied upon a consultant, B. L. Bobo b Company, to <br />manage the mine, including all permit-related compliance and representation. <br />Unfortunately, the consultant misrepresented its efforts in American Shield <br />Coal Company's behalf. In fact, the consultant billed the operator for the <br />preparation and installation of a modified sign, which was never installed. <br />The operator has terminated its business relationship with 6. L. Bobo d <br />Company and is attempting to remedy the damages resulting from the <br />consultant's tack of diligence. <br />In my opinion, while the situation is unfortunate, the operator alone has the <br />legal responsibility for assuring compliance with the terms of its permit. I <br />believe that NOV C-88-009 was properly issued. I concur with the assessment <br />officer's proposed assessment for minimal Significance (;100.00) and "Low <br />Level Negligence" (;250.00). Because abatement was not affected until the <br />deadline, I am not proposing any adjustment for good faith. Therefore, I am <br />not proposing any amendment to the proposed civil penalty assessment of <br />E350.00 for NOV C-88-009. <br />attachment <br />