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;~ SETTLEMENT AGREEMENT JUSTIFICATION Seneca Coal Company Yoast Mine- Permit Number C-1994-082 Notice of Violation # CV-2001-013 James B. McArdle, Conference Officer The Notice of Violation CV-2001-013 was issued on October 26, 2001 based upon an inspection performed on October 23, 2001. The NOV was issued for the following problem; 'Failure to comply with the maximum weight of explosives to be detonated as determined by the scaled-distance equation, and failure to obtain Division approval for the use of a modified equation to determine maximum weight of explosives per delay. On December 10, 2001, an Assessment Conference was held at 1313 Sherman Street, Room 623, Denver, Colorado. In attendance, in addition to the Conference Officer, was Mr. Mike Boulay and Mrs. Sandra Brown representing the Division and Mr. Gregg Kitchen and Mr. Robert Shevling of Seneca Coal Company. Mike presented testimony outlining the details of the violation as outlined above. On October 23, 2001 coal and overburden blasting records for the prior three years were obtained and reviewed. NOV CV-2001-013 was issued on October 26, 2001 for failure to comply with provisions of Rule 4.08.4(10) and Rule 4.08.6(2). This violation was issued for an overburden blast that occurred on September 12, 2001. On October 30, 2001 this NOV was modified to include 2 additional blast records where the maximum weight of explosives per delay was exceeded as determined by the scaled-distance equation. These additional blast records to be included are for overburden shots that occurred on October 17, 2000 and February 19, 2001. It was pointed out that neither blasting record showed which blast hole was closest to the Valora dwelling nor was there a seismograph report attached. Also, the permit required Seneca to utilize the scaled-distance equation outlined in Rule 4.08.4(10) until the Division approves a request for a modified equation. Mr. Gregg Kitchen did not wish to argue the basis of the NOV. Gregg pointed out that there was a misunderstanding as to the requirements prior to blasting and stated that he was working with Mike on modifying the scaled-distance equation. There have been 30 seismograph readings since the this NOV was issued. Mr. Robert Shevling felt that the Rule 4.08.6(1) was poorly written and misleading, Mike and Sandy agreed with Robert on this subject. Mike, Sandy, Gregg and Robert discussed the use of a modified scaled-distance equation and it was felt that it might be possible to address this equation modification in a minor revision. The Proposed Civil Penalty by the Assessment Officer for NOV CV-2001-013 is: History $50.00 Seriousness $1,250.00 Fault $750.00 Number of Days Penalty Assessed 1 Good Faith 0