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SETTLEMENT AGREEMENT JUSTIFICATION Bowie Resources Ltd. Bowie No. 1 Mine- Permit Number C-1981-038 Notice of Violation # CV-2001-003 James B. McArdle, Conference Officer 9'~Y~ The Notice of Violation CV-2001-003 was issued on March 6, 2001. The NOV was issued for the following problems; 'Failure to maintain the west portal sedimentation pond in accordance with designs that are approved and required to ensure adequate capacity. On May 18, 2001, an Assessment Conference was held by phone at 1313 Sherman Street, Room 215, Denver, Colorado. In attendance, in addition to the Conference Officer, was Joseph Dudash representing the Division and Basil Bear representing Bowie Resources, Inc.. Joseph Dudash presented testimony outlining the details of the violation as outlined above. The NOV required that the pond be excavated to design parameters and recertify the pond as built by March 16. Pond reconstruction began on March 7 and was completed on March 9. On March 14 Bowie requested and received an extention of the abatement deadline to March 23 for the recertification of the pond as built. On March 22, the consultant recertified the pond and submitted the documentation to the Division. The Division extended the abatement deadline to April 13 to allow for a field inspection. On April 9, 2001, the DMG terminated the NOV after inspecting the site. Mr. Basil Bear simply requested that a reduction in the proposed penalty be given for good faith. The Proposed Civil Penalty by the Assessment Officer for NOV CV-2001-003 is: History $00.00 Seriousness $250.00 Fault ~ $500.00 Number of Days Penalty Assessed 1 Good Faith 0 After hearing this testimony and considering the evidence presented, t have cometo the following conclusions: FMstorv A $0.00 penaky is appropriate for history. Seriousness The Conference Officer concurs with the proposed civil penalty assessment as written, a penalty of $250.00 is appropriate.