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Proposed Civil Penalty Assessment <br />Basin Resources, Inc /The Golden Eagle Mine <br />NOV CV-2007-001 (Issued February 15, 2007) <br />March 16, 2007 <br />History [Rule 5.04.5(3)(a)]: <br />No NOVs have been issued at this mine during the I2 months preceding the issuance of this NOV. <br />The History component is therefore proposed to be set at $0. <br />Seriousness (Rule 5.04.5(3)(b)]: <br />The Seriousness component of a proposed assessment may range from $0 to $1750. The amount <br />proposed depends upon whether the violation was one of performance requirements or of <br />administrative requirements. This NOV was written for a violation of performance requirements. <br />In the case of a violation of performance requirements, the amount to be assessed for Seriousness <br />depends upon (1) the probability of the occurrence of the event which a violated standard is <br />designed to prevent, and (2) the duration and extent of the potential or actual damage in terms of <br />area and impact on the public or environment. <br />(1) It appears that Basin Resources Inc has not complied with the requirements of State Law and <br />[he Board's Regulations pertaining to either promptly repairing material damage to certain <br />regulated structures resulting from subsidence caused by underground coal mining operations <br />or compensating the owners of the damaged structures in the full amount of [he diminution in <br />value resulting from the subsidence. As such, an event that the Act and Regulations are <br />designed to prevent appears to have occurred. <br />(2) According to the November I7 2005 Opinion in the matter of Colorado Court of Appeals <br />Case No 03CA0750, material subsidence damage occurred to an occupied residential <br />dwelling that resulted in a diminution in the value of the property in the amount of $622,000. <br />The Seriousness component of this assessment is therefore proposed to be set at $1000. <br />Fault [Rule 5.04.5(3)(c)]: <br />The fault component of a proposed civil penalty assessment may range from $0 to $1500. <br />Assessments of"unavoidable" violations may range from $0 to $250. Assessments for violations <br />that were the result of"negligence" may range from $250 to $750. Assessments for violations that <br />resulted from "intentional conduct" may range from $750 to $1500. <br />Failure by the permittee to comply with the requirements of the cited State law and Board's <br />Regulations appears highly negligent. <br />The Fault component is therefore proposed to be set at $750. <br />Good Faith in Achieving Compliance [Rule 5.04.5(3)(d)]: <br />The NOV has not been terminated. Therefore, a reduction in the proposed amount of [he civil <br />penalty for good faith efforts is not proposed at this time. <br />Good faith credit is therefore proposed to be set at $0. <br />The Total Proposed Civil Penalty Assessment for this NOV is therefore set at $1750. <br />