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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, Coloado 80203 <br />Phone: (303) 866.3567 <br />FAX: (303) 832-8106 <br />INTEROFFICE <br />MEMORANDUM <br />TO: Dan Hernandez <br />FROM: Jim Stark <br />SUBJECT: Penalty Assessment for Oxbow NOV CV-2006-001 <br />DATE: 21 February 2006 <br />OLORADO <br />I V I S I O N O F <br />INIiRALS <br />EOLOGY <br />:LANATION•NINING <br />EAFETY•ECIENCE <br />Bill Owens <br />Govemw <br />Russell George <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Naturzl Resource Trustee <br />I am requesting your assistance in assessing a penalty for Notice of Violation CV-2006- <br />001, issued to Oxbow Mining, LLC's Elk Creek Mine on 23 January 2006 for drilling a <br />gob vent borehole without first obtaining the Division's approval. Oxbow received the <br />violation on 27 January 2006. <br />The violation was written based on the Division's 18 January 2006 inspection of the Elk <br />Creek and Sanborn Creek Mines. Oxbow had previously received approval for Technical <br />Revision 51, which allowed for the drilling of two boreholes at the Hubbard Creek Fan <br />site. One hole was to pump water from the active D-Seam workings in the Elk Creek <br />Mine and the other was to inject this water into the B-Seam workings of the abandoned <br />Somerset Mine. With the submittal of this revision, Oxbow stated that they might need <br />to drill an additional hole into the B-Seam in the event that they hit a rib (or pillar, as was <br />the case). In fact, Oxbow hit pillars in the B-Seam on their first two attempts. One of <br />these holes has been sealed and the other needs to be sealed (as of the Division's 18 <br />January 2006 inspection). The Division noted this in its inspection reports during the <br />drilling process but took no additional action. <br />On the 18 January inspection, I asked Jim Kiger about the third hole on the site. He <br />responded that it was a gob vent borehole. Oxbow had permitted the drilling of 15 <br />GVB's with Technical Revision 53, but this GVB was not part of that submittal. <br />Consequently, the Division issued NOV CV-2006-001 for not properly permitting the <br />borehole prior to performing the work. <br />The GVB was drilled on a pad in an area that is approved for distwbance and is currently <br />disturbed. The disturbance boundary is noted on the appropriate maps. The Hubbard <br />Creek Fan pad reports to a sediment pond (sediment pond F) via a series of designed <br />ditches and has an upland diversion ditch which routes fresh water away from the pad. <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inattive Mines Geological Survey <br />