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SETTLEMENT AGREEMENT JUSTIFICATION NOV C-96-005 Notice of Violation C-96-005 was issued for "Failure to minimize disturbance to the hydrologic balance. Failure to operate and maintain Gulch A Pond to contain or treat runoff so it complies with all Federal and State laws. Failure to contain or treat the runoff entering Gulch A Pond to effect comphance with Rule 4.05.2(7). Failure to pass surface drainage from the disturbed area through a sediment pond. Failure to maintain East side ditch." Erica Crosby issued the NOV to Colowyo Coal Company on March 20, 1996 during a partial inspection of the mine site. She observed sediment leading from the discharge pipe to Goodson Creek and a breach in the East side ditch leading to the Gulch A pond. The NOV is also partially based on a water quality sample submitted by Colowyo to the Colorado Department of Health and Environment, Water Quality Control Division (WQCD) for water that was discharged from the Gulch A Pond. Results of the sample showed the water had a settleable solids level of 580 mg/I, total suspended solids of 14,900 mg/I and iron was 249 mg/1. The sample was taken by Colowyo on February 22, 1996. At that time the Gulch A pond was nearing the primary spillway. A sight inspection of the water by the operator did not indicate settleable solids would be a problem. Ms. Crosby was concerned about the design considerations for the Gulch A pond. It was unclear based upon the information she had whether or not all the drainage area that was flowing into the pond had been considered in the design. To resolve this issue she requested as part of the abatement that the design Representatives of Colowyo, Rich Atkinson, Jim Kieger; Kimberly Wolf and Diane Kennedy, said that the standard in effect was settable solids, because a storm exemption had been granted at the time of the discharge. The standard for settable solids is 0.5 mg/1. Clearly, the sample result was not in compliance with this standard. However, they presented a letter from the laboratory that conducted the water quality analysis stating the sample results were suspect because of the colloidal nature of the solids. The letter from the lab says "Evidently, the measuremem process as to whether this material is actually settable is highly subjective in nature. Different analysts and supervisory personnel have debated on what to report. This type of matrix or situation is not addressed in the method." Because of the suspect nature of the sample results, Colowyo requested that the portions of the NOV referring to water quality be removed from the NOV. Mr. Allinson said it was unlikely the sediment level would have been so high because the pond was surveyed after this storm event and there was plenty of sediment storage volume. I will uphold the pond portions of the NOV. Although, the sample may be suspect ,the reported value was 580 mg/1. The standard is only 0.5 mg/l. In the letter from the lab they did not withdraw the reported value, they stated the results are subjective. Unfortunately, there is not another sample to compare the results to since the reported suspect value is over 1,000 times the limit. The value may not be correct, but I do not feel there is strong enough evidence to vacate pond portions.