ENFORCE30294

• Permit No: C1981012
• IBM Index Class Name: Enforcement
• Doc Date: 11/17/2006
• Doc Name: Settlement Agreement
• From: DRMS
• To: Picketwire Processing, LLC
• Violation No.: CV2006003
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
7373 Sherman St., Room 215
Denver, Colorado 80203 C O L D RA D O
DIVISION O F
Phone: [phone] RECLAMATION
FAX: [phone] MINING
- ~t-
SAF ETY
Bill Owens
Governor
Russell George
Executive Director
SETTLEMENT AGREEMENT JUSTIFICATION Ronald w.cattany
Picketwire Processing, LLC Division Director
New Elk Mine\C-1981-012 Natural Resource Trustee
Notice of Violation No: CV-2006-003
James McArdle, Conference Officer
Notice of Violation Number CV-2006-003 resulted from a failure to provide an increase in the reclamation
bond as outlined in letters dated March 31, 2005, December 20, 2005 and July 19, 2006. The final date
for abatement of this violation was September 15, 2006. The abatement deadline was extended twice to
September 29 and then to October 27, 2006. Cessation Order C-2006-007 was issued when the October
27` deadline for submitting the additional bond was not met. On November 14, 2006, the additional bond
was provided to the Division and the Cessation Order was abated.
On November 16, 2006, an Assessment Conference was held at the Division of Minerals and Geology
office at 1313 Sherman Street, Denver, Colorado. In attendance, in addition to the Conference Officer,
was Mr. Kent Gorham representing the Division and representing the operator were Mr. Ronald G.
Thompson (Peak Proj. Mgmt), Mr. Wayne Coverdale (NECC) and Mr. Florie Massarotti.
Kent Gorham detailed the nature of the violation and the failure of the operator to provide the required
additional reclamation bond by the final abatement deadline
Ronald Thompson discussed the difficulty that was experienced in working with the bonding company and
meeting the bond deadline while also working on the permit transfer particulars. Communications were
constant between the company and the Division. Mr. Coverdale stated that reclamation activities
continued to proceed from March 2005 until the present.
The Proposed Civil Penalty originally determined by the Assessment Officer for CO-2006-003 was:
History $0.00
Seriousness (Significant) $1000.00
Fault (Negligence) $750.00
Number of Days Penalty Assessed 1
Good Faith 0
Total proposed penalty $1,750.00
After hearing this testimony and considering the evidence presented, I have come to the following
conclusions:
History
A $0.00 penalty is appropriate for history.
Office of Office of
Mined Land Reclamafion Ac[ive and Inactive Mines