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3 <br />Colorado's approval of impoundment designs in the Roadside permit constitutes a <br />substantive deficiency in apermit-related action in which approval of designs which are <br />inconsistent with the approved program occurred. Therefore, Colorado identified this <br />problem as a permit defect and addressed the matter as discussed in INE-35. The operator <br />was given written notice of the need to revise the permit within thirty days, a time period <br />of less than thirty days for approval was identified, and implementation of any required <br />changes will be required consistent with Colorado's approved program. Clearly, the spillway <br />situation at ponds 1, 2, 7, and 8 is a permit defect. <br />In addition, AFO's response says, "As stated in paragraph 5 of OSM Directive INE-35, <br />enforcement action by the State regulatory authority is required", presumably, "Since the <br />construction of an impoundment and its spillway is an on-the-ground performance standard". <br />The portion of INE-35 cited by AFO indicates enforcement action by the State is required <br />to address permit defects resulting from fraud or collusion, or situations where the permit <br />does not specifically address a practice which is governed by a performance standard. <br />Fraud or collusion are not relevant. Therefore, the provision of INE-35, paragraph 5 <br />requiring enforcement action is not applicable in this instance. <br />Second, AFO's assertion that enforcement action is required to address this situation is not <br />consistent with past interpretation and application of INE-35 by the AFO and OSM <br />headquarters. During the past five years, fifteen permit defects have been identified by <br />Colorado as a result of TDN's issued by the AFO. Thirteen of those TDN's cited <br />performance standard violations. In three of these cases, on-the-ground complications had <br />actually occurred. Colorado's identification of permit defects in all fifteen of these instances <br />was found to be an appropriate response by either the AFO or, by OSM headquarters. <br />Colorado disagrees with AFO's finding that the condition cited in the TDN is not a pernut <br />defect because of the above points. <br />In summary, Colorado identified the issue raised in TDN X-94-020-352-006 as a permit <br />defect, and addressed the matter in accordance with the provisions of Colorado's approved <br />program and OSM Directive INE-35. In doing so, Colorado was neither arbitrary or <br />capricious. In fact, Colorado acted in accordance with OSM's policy directives which <br />provide specific guidance regarding the definition and handling of permit defects. Both <br />OSM and Colorado have effectively and appropriately handled such matters as permit <br />defects in the past. We believe that after a careful review of the facts in this matter, OSM <br />headquarters will agree that this is a matter of a permit defect, and reverse the AFO's <br />finding that Colorado has acted in an arbitrary and capricious manner with regard to ponds <br />1 and 8 at the Roadside Portals mines. <br />