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~~ <br />Justification of Settlement Agreement <br />for <br />NOV No. C-91-010 <br />First National Bank of Florence <br />La Plata Mine <br />An assessment conference was convened to consider NOV No. C-91-010 on Tuesday, <br />November 26, 1991 at 2:OOPM in the office of the Mined Land Reclamation <br />Division, Denver, Colorado. In attendance at this conference were; Mr. Jim <br />Hanson and Hr. Drew Lamoreux of the First National Bank of Florence, Mr. Dave <br />Berry and Mr. Harry Ranney of the Mined Land Reclamation Division, and Mr. <br />James B. McArdle of the Mined Land Reclamation Division and Presiding <br />Assessment Conference Officer. <br />NOV No. C-91-010 was written by Mr. Harry Ranney during a July 12, 1991 <br />inspection. Repreaentativee of the First National Bank of Florence were not <br />present during this inspection. This NOV was written for failure to design, <br />construct and maintain sediment control structures as necessary to provide <br />protection for topsoil, vegetation and the hydrologic balance and for failure <br />to contain sediment. A series of severe rainstorms eroded the site, clogged <br />culverts and plugged approximately 100 feet of an irrigation ditch located on <br />the south side of County Road 120. The remedial action included the following <br />items: <br />1. install and maintain sediment control and drainage control measures <br />in accordance with the approved plan. <br />2. Clean out sediment from the irrigation ditch. <br />3. Repair down-cutting on the main drainage channel. <br />Mr. Harry Ranney provided a discussion of the history of the Hanks involvement <br />with the La Plata Mine and actions that were taken by the company to comply <br />with the law. Then, Mr. Lamoreux and Mr. Hanson provided a discussion of their <br />attempts to comply with the law and complete reclamation of the coal mine. <br />Issues which impacted the Bank's ability to control erosion and complete <br />reclamation included: <br />1. The difficulty of working around the conveyor system which is <br />currently under litigation and is located in the center of the drainage. <br />2. An individual who is currently living in a trailer located on the <br />mine site and having a septic system constructed in the center of the <br />drainage and at a location which could be used as the site of a sediment <br />control pond. <br />3. Mr. Frank Johnson, Attorney General's Office, informed the Bank, in <br />the summer of 1990, that no reclamation was to proceed until the issue of <br />the conveyor was settled. <br />4. Attempts to work with the Division on the reclamation of the mine <br />site failed due to a lack of communication, and the ownership questions <br />regarding the conveyor, not a willingness on the part of the bank to do <br />the work. Note-moat of the communication between the State and the Bank <br />seemed to be verbal rather than written. <br />