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r III IIIIII <br /> IIIIIIIIII <br />999 <br />OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: 1303) 866-3567 <br />FAX: 13031832-8106 <br />DATE: Januarv 7, 2002 <br />TO: Dan Hernandez <br /> <br />FROM: ~~ <br />Dan Mathews <br />RE: Request for Proposed Penalty Assessment <br /> Munger Canyon Mine (C-81-020) <br /> NOV CV-2001-O18 <br />I am requesting your penalty assessment services regarding the above referenced NOV, which 1 issued to <br />Lodestar Energy, Inc. (LEI), on 12/21/01. January 5 was the ISh day; 30'" day will be January 20. There <br />are no previous enforcement actions at Munger pertinent to the "History" component ofof the penalty <br />assessment. Enclosed is the NOV and inspection report of December 21. The NOV was for "Failure to <br />complete interim reclamation at the Munger Mine bench as contemporaneously as practicable with mining <br />operations. Specifically, failure to complete placement and stabilization seeding of cover soil over graded <br />coal waste at the Munger Mine bench by November I, 2001, as specified in approved permit." <br />Also enclosed is a schedule that had been submitted to me by the operator on 12/17/01. 1 had asked that <br />they submit explanation as to why the interim reclamation work had not been completed during the fall of <br />2001. Their schedule begins on July 31, 2001, and focused quite a bit on the time devoted to site cleanup <br />and sediment pond excavation at [heir adjacent McClave Canyon Mine, resulting from a Flood on August <br />21. They also mention "inclement weather" (snow and muddy conditions had pretty much precluded <br />grading work at the site by early December), and delays associated with material testing for stability <br />analysis. <br />I was not sufficiently persuaded by their arguments, and issued the NOV. My opinion was that foot- <br />dragging during the permitting process contributed to the "last minute" nature of the scramble to complete <br />the analytical work and finish the job before winter. <br />DIVISION OF <br />MINERALS <br />GEOLOGY <br />RECLAMATION <br />MINING•SAFETY <br />BJI Owero <br />Governor <br />Greg E. Walther <br />Executive DireUOr <br />Michael a Long <br />Division Director <br />The situation began with a DMG mid-term review letter of 8/10/2000. Operator had previously indicated <br />("unofTicially") that LEI had no plans for future use of theLoma Rail Loadout, and [hat potential for future <br />use of the mine portals and bench at the Munger Mine (T.C. for the last 20 years) was uncertain. In the <br />midterm letter, DMG requested amendments to the permit to address timely initiation of reclamation at the <br />mine and loadout, pursuant to 4.13, "within 60 days". It is pertinent to note that the reclamation plan in the <br />permit at that time had specified that remaining coal at theloadout would be trucked to the mine bench, and <br />placed against the base of the highwall during reclamation. <br />A response TR determined to be "incomplete" was submitted on 10/20/00, and a "complete" TR response <br />was submitted on I I/17/00. In the response TR (TR-13), LEI formally acknowledged that they had no <br />plans for future use of the Loma Rail Loadout, but they believed there was a possibility [ha[ theMunger <br />portals might be used in [he future to access coal seams currently being mined via theirMcClane Mine <br />Portals. The TR referenced initiation of final reclamation at the loadout and interim reclamation at the <br />mine bench area, but lacked specificity. In a PAR letter of I/10/01, the Division requested "that text be <br />amended to specifically commit to completion ofLoma Loadout final reclamation and minesite interim <br />reclamation (placement of coal lifts, placement of non-toxic cover, and stabilization)by no later than <br />November 1. 200/ ". <br />