ENFORCE30855

• Permit No: C1981015
• IBM Index Class Name: Enforcement
• Doc Date: 5/2/1988
• Doc Name: MLRD FN C-81-015 PN 79-60 UG/C CONFERENCE FOR PROPOSED CIVIL PENALTY NOV/CO C-88-009
• From: AMERICAN SHIELD COAL CO
• To: MLRD
• Violation No.: CV1988009
• Media Type: D
• Archive: No

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AMERICAN SHIELO COAL COMPANY
Suite 175
10830 N. Central Expwy.
Dallas, TX 75231
[phone]
P. 0. Box 14158
2760-R So. Havana St.
Aurora, CO 80014-2618
[phone]
May 2, 1988
Mr. Mike Savage
Assessment Officer
Colorado Dept. of Natural Resources
Mined Land Reclamation Division
215 Centennial Bldg.
1313 Sherman Street
Denver, CO 80203-2273
Re: CMLRD File C-81-015, Permit >k79-60 UG/C
Conference for Proposed Civil Penalty
NOV/CO No. C-88-009
Dear Mr. Savage:
Thank you for the opportunity to present an explanation of good faith
effort on the part of American Shield Coal Company tc comply with the
regulations of the Colorado Mined Land Reclamation Division. We would also
like to take this chance to provide an explanation of the mitigating
circumstances involved with our failure to respond at the instance of the
issuance of the citation of the violation issued for failure to have a
proper identification sign at the Fruita Mine.
Background
The permit involved in the above referenced citation was issued to the
Dorchester-ColoMine Joint Venture on September 5, 1979. Dorchester Coal
Company purchased the interest of ColoMine Coal Inc. in the fall of 1980.
Arabian Shield Development Company purchased the stock. of Dorchester Coel
Company effective February 7, 1986, and changed the name of its coal
subsidiary to American Shield Coal Company (RSCC).
General Good Faith Effort
Upon acquisition of the coal company, Arabian Shield engaged the 6. L.
Bobo Company to manage American Shield Coal Company. Mr. Bobo had formerly
been President of Dorchester Coal Company and was hired because of his
expertise and familiarity with the properties. American Shield patd the
Bobo Company a management fee of 510,000.00 per month. Under the terms of
the management agreement, the Bobo Company was to handle all of the affairs
of American Shield Coal Company, including compliance with State and
Federal regulations.