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STATE 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: (303) 866-3567 <br />PAX: (303) 832-8106 <br />DIVISION OE <br />MINERALS <br />GEOLOGY <br />fiFC LAMATION <br />MINING•SAFETY <br />Biii Owens <br />Governor <br />Greg E. Walther <br />SETTLEMENT AGREEMENT JUSTIFICATION &ecutive Director <br />Basin Resources, 1nC. Ronald w. Cattany <br />Acting Division Director <br />Golden Eagle Mine-Permit No: C-81-013 <br />Notice of Violation No: CV-2002-008 <br />James B. McArdle, Conference Officer ~~ <br />The Notice of Violation CV-2002-008 was issued on June 17, 2002 failure to conduct hydrologic <br />monitoring in accordance with the approved plan. <br />On October 1, 2002, an Assessment Conference was held at 1313 Sherman Street, Room 419, <br />Denver, Colorado. )n attendance, in addition to the Conference Officer, were Mr. Ronald <br />Thompson and Mr. Jerry Koblitz representing Basin Resources and Mr. Kent Gorham <br />representing the Division. Kent presented testimony outlining the details of the violation which <br />involved failing to take semi-annual and annual water samples from certain alluvial and flooded <br />mine monitoring wells. <br />Mr. Ron Thompson discussed some of the difficulties the company encountered resulting in this <br />violation. A bailer was lost while trying to take a sample of the alluvial wells. Ownership was in <br />the process of changing from one energy company to another at GEM#2 resulting in a delay in <br />monitoring. <br />The Proposed Civil Penalty originally determined by the Assessment Officer for NOV CV-2002- <br />008 was: <br />History $0.00 <br />Seriousness $750.00 <br />Fault $750.00 <br />Number of Days Penalty Assessed 1 <br />Good Faith 0 <br />Total proposed penalty $1500.00 <br />After hearing this testimony and considering the evidence presented, I have come to the <br />following conclusions: <br />