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STATE OF COLORADO <br />DIVISION OF ~~11NERALS AND GEOLOGY <br />Drpanmrn+ o+ ; Lriur,il hr5nur~es <br />1313 Sherman 51., Runm ' I i <br />Denver, Colorado 90?U3 <br />Phnnc: 130}I Hn6J i47 <br />FAV 1303+93'_31 UV <br />SETTLEMENT AGREEYIENT JUSTIFICATION <br />Blue iVlountain Energy , Inc.\ Deserado Mine-C-81-018 <br />Notice of Violation # CV-98-007 <br />James B. IvlcArdle, Conference Officer q~ <br />~f~ <br />~~ <br />DEP.ARTI~IEV~' OF <br />NATURAL <br />RESOURCES <br />Rov Rnmer <br />Governor <br />len+es S. LOChhearl <br />Enecunre DveUOr <br />Michael 9. luny <br />Dnision Oireuor <br />Dan Mathews arrived at the Deserado Mine on August 4, 1998 to do a complete inspection. On <br />the First day of inspection, Scott Wanstedt discussed the blocked culverts with Dan Mathews and <br />the previous week's storm event which occurred on July 27, 1998. The Notice of Violation C- <br />98-007 was issued on August 6, 1993 for failure to maintain culverts at the East Portal and East <br />Portal Access Road. The 1st and 3rd culverts were completely blocked. The second culvert was <br />partially blocked but still functioning. Blue Mountain Energy, Inc. indicated that the storm <br />exceeded the culvert design capacity in that it exceeded the 10 yeaz, 24 hour event. Little or no <br />damage occurred beyond the clogging of the culverts. <br />Culvert work started on August 5, 1998, at the request of Dan Mathews. The culverts were not <br />completely functional prior the time that Dan Mathews completed the inspection and left the site <br />on August 6, 1998. Phone logs on August 13 made note that the culverts were all functional by <br />August 8 and this was confirmed on the August 18th inspection. Blue Mountain Energy, Inc. <br />feels that there was no violation since the law allows a company to repair damage, caused by a <br />catastrophic event, to roads and culverts as soon as practicable after the damage has occurred. <br />The company had prioritized work such that settling pond #4 was being pumped down for <br />cleaning and the mine backhoe was being used to clean out 6 foot culverts along the railroad line <br />outside of the permit boundary. Blue Mountain Energy, Inc. requested that the NOV be vacated. <br />The Proposed civil penalty for CV-98-007 was: <br />History $0.00 <br />Seriousness $0.00 <br />Fault $250.00 <br />Number of Days Penalty Assessed 1 <br />Good Faith $20.00 <br />Total Civil Penalty Proposed by the Assessment Officer was $0.00 <br />