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/ III IIIIIIIIIIIII III <br />- 999 <br />STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources ~y <br />1313 Sherman $t., Room 215 ~ <br />Denver, Colorado 80203 DIVISION O G <br />Phone: (303) 866-3567 M I N E RA L ~~~? <br />FAX: (303) 832-8706 ~ ~ & ( <br /> GEOLOGti"~` <br /> RECLAMATION <br />March 19,2002 MINING•SAFETY <br />Snowcap Coal Company Bill Owens <br />C/O 7lm Stover Governor <br />LE. $tOVer & ASSOClateS Greg E. Walther <br />Executive Director <br />2768 Compass Drive, $ulte 1 O1 <br /> Michael B. Long <br />Grand Junction, CO 81506 Division Direnor <br />Re: Notice of Violation - CV-2000-010 <br />Notice of Violation - CV-2001-005 <br />Civil Penalty Assessments <br />Roadside Portals Mine -Permit No. C-1981-041 <br />Dear Mr. Stover: <br />The above-referenced Notices of Violation were abated and terminated effective March 15, 2002. These Notices of <br />Violation required replacement of the invalid Frontier bond #10846 previously posted for Permit No. C-1981-041. The <br />required replacement bond (Liberty Mutual #014-018-028; $3,264,149.00) was posted by Snowcap Coal Company, Inc. <br />and was formally accepted on March I5, 2002. The Frontier (#108486; $2,603,016.00) and Utica (#1686512; <br />$300,000.00) bonds previously posted have been released to Snowcap Coal Company. <br />The Division of Minerals and Geology will not assess civil penalties for Notices of Violation CV-2000-010 and CV- <br />2001-005. These Notices of Violation were properly issued for good cause and the Notices of Violation are now abated <br />and terminated. Failure-to-abate cessation orders were never issued due [o pending Mined Land Reclamation $oard and <br />District Court appeal processes. Since the Notices of Violation are now abated and terminated, there will not be any <br />failure-lo-abate cessation orders issued pursuant to Notice of Violation Nos. CV-2000-010 or CV-2001-005. <br />Powderhorn Coal Company no longer exists in Colorado due to bankruptcy, and Snowcap Coal Company, Inc. is the <br />new owner of the Roadside Mine. Snowcap Coal Company posted the replacement bond on November 29, 2001, <br />shortly after becoming the new owner of the mine pursuant to a bankruptcy court order of October 29, 2001. Forrnal <br />acceptance of the bond was delayed due to the permit transfer process. <br />Since Powderhom Coal Company no longer exists in Colorado due to bankruptcy, any attempt to collect civil penalties <br />from Powderhorn Coa] Co. would be futile. Snowcap Coal Co. expeditiously complied with the Notices of Violation <br />by posting a proper replacement bond. Therefore, assessment of civil penalties against Snowcap in this case would not <br />serve any purpose, and would be inappropriately punitive. <br />Please call with any questions. <br />Since ly, <br />l ..~ <br />(~Dav' erry <br />Coal Program Supervisor <br />Cc: Mike Long <br />Sandy Browo <br />Dan Mathews <br />