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Proposed Civil Penalty Assessment Oxbow Mining, Inc. /The Sanborn Creek Mine DMG Permit No. C-81-022 NOV CV-2001-008 Materials reviewed during the preparation of this proposed penalty were: (I) copy of DMG inspection report of 4/10/01; (2) copy of signed NOV form; (3) three slides dated 4/10/01 taken by DMG staff, and (4) 5/10/OI memo from Joe Dudash. History [Rule 5.04.5(3)(a)]: One NOV has been issued to this mine in the 12 months preceding the date of this NOV; however, that NOV has yet to proceed through the appeals process. The History component of this assessment is therefore proposed at $0. Seriousness [Rule 5.04.5(3)(6)]: The Seriousness component of a proposed civil penalty assessment may range from $0 to $1750. The amount assessed for Seriousness depends upon whether [he permittee failed to comply with an administrative standard or a performance standard. 'This NOV was written as a failure to comply with the performance standazds for impoundment designs. In the case of a permittee's failure to comply with performance standards, the amount of the Seriousness component is based upon two additional factors: (I) the probability of the occurrence of the event which [he violated standard is designed to prevent, and (2) the duration and extent of the actual or potential damage in terms of area and impact upon [he public and the environment. (1) The cited standards aze designed to prevent construction of impoundments that do not meet regulatory criteria. It is unknown whether the impoundments meet regulatory criteria. (2) The extent of disturbance of the impoundments appears to be approximately I acre. This is moderately significant. The Seriousness component of this assessment is therefore proposed at $500. Fault [Rule 5.04.5(3)(c)]: The Fault component of a proposed civil penalty assessment may range from $0 to $ 1500. Assessments for "unavoidable" violations may range from $0 to $250. Assessments for violations that were the result of "negligence" may range from $250 to $750. Assessments for violations that were the result of"intentional conduct" may range from $750 to $1500. The permittee stated in its revision that these impoundments would be excavated, but neglected to state that the impoundments would include embankments. This NOV [here fore appears to have occurred due to a moderate degree of negligence. The Fault component of this assessment is therefore proposed at $500. Credit for Permittee's Good Faith Efforts in Achieving Compliance [Rule 5.04.5(3)(d)]: As this NOV remains unabated, no reduction of this assessment is proposed at this time. The Total Proposed Civil Penalty Assessment for this NOV is therefore proposed at $1000.