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JUSTIFICATION FOR THE PROPOSED SETTLEMENT AGREEMENT CESSATION ORDER C-85-013 JEWELL STRIP During the assessment conference held in our office on May 7, 1985, new facts regarding the cessation order became available. Mr. Healey stated that he had not been mining at the site, but in fact, was exploring to see if any coal worth mining existed at the Jewell Strip. Based on this change of facts, the original cessation order has been modified to indicate that Mr. Healey was "conducting coal exploration activities without filing with the Division a Notice of Intent to Explore and receive approval prior to commencing operations." Additionally, there was substantial discussion concerning the amount of civil penalty proposed. The original assessment proposed by the Division was: History $ 00.00 Seriousness 1,750.00 Fault 1,500.00 TOTAL 3,250.00 Seriousness Based on the fact that the area involved in the exploration activities was all disturbed by previous coal mining, the seriousness should be reduced. Therefore, I am proposing a seriousness component of $750.00. Fault I reaffirm the proposed $1,500.00 for failure to obtain a permit for exploration contained in the staff's proposal for civil penalty dated March 18, 1985. Good Faith Based on the actions of Mr. Healey, I am proposing a good faith reduction of $750.00. This reduction is warranted for the following reasons. Mr. Healey undertook total regrading of the site immediately upon notification, even though he was awaiting an on-site hearing to determine whether or not the cessation order should be vacated. All reclamation work was completed prior to the on-site hearing. The reclamation completed substantially improved the drainage on the access road, and thus in total, was an improvement over the conditions prior to Mr. Healey's activities. Summar The proposed civil penalty for the settlement is as follows: History $ 00.00 Seriousness 750.00 Fault 1,500.00 Good Faith - 750.00 TOTAL 1,500.00