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STATE OF COLORADO MINED LAND RECLAMATION BOARD DEPARTMENT OF NATURAL RESOURCES IN THE MATTER OF: Twin Pines Investment, L.P. Falcon Energy, General Partner Twin Pines No. 2 Mine Permit No. C-83-058 Permit Revocation, Bond Forfeiture and Civil Penalty Assessment for Notices of Violation Nos.& C-96-007 & C-96-008 and Cessation Order C-96-009 To: Christopher Reed and all other persons engaged in or owning or controlling the following coal mine operation: Twin Pines No. 2 Mine, located in Section 2, Township 205, Range 70W in Fremont Counry, Colorado. Findings of Fact Pursuant to the authority vested in the State of Colorado Mined Land Reclamation Board (Board) by C.R.S. 34-33-124(2) and 123(8)(f), and Rules 5.01.3(2), 5.03.5(4) and 5.04.4(3) of the Regulations of the Colorado Mined Land Reclamation Board for Coal Mining, the Board hereby makes the following findings of fact: 1) The Twin Pines No. 2 Mine is a small, underground mine, located in Fremont County, Colorado, which was permitted and operated by Twin Pines Investment, L.P. (Falcon Energy, General Partner). 2) On April 9, 1996, Notices of Violation (NOV) Nos. C-96-007 and C-96-008 were issued to Twin Pines Investment, L.P. (TPI) for failure to conduct hydrologic monitoring in accordance with the approved monitoring plan, and failure to make mine records available in a location near the mine, respectively. 3) On April 16, 1996, the Division of Minerals and Geology (DMG) issued Cessation Order No. C-96-009 to TPI, because NOV's C-96-007 and C-96-008 were not abated. 4) On April 17, 1996, the DMG received a letter from Mr. Chris Reed of TPI stating that TPI would be unable to comply with the terms of the Cessation Order which required abatement of the NOV's. 5) On April 19, 1996, the DMG issued an "Order to Show Cause Why Permit