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SETTLEMENT AGREEMENT JUSTIFICATION <br />Kaiser Ventures, Inc. <br />Chimney Rock Mine-Permit Number C-1981-023 <br />Notice of Violation No: CV-2002-013 <br />James B. McArdle, Conference Officer <br />The Notice of Violation CV-2002-013 was issued on July 5, 2002 for failure to maintain the <br />required records on site. <br />On September 24, 2002, an Assessment Conference was held at 1313 Sherman Street, Room <br />215, Denver, Colorado. In attendance, in addition to the Conference Officer, was Mr. Harry <br />Ranney representing the Division and Mr. Jerry Koblitz representing the operator. Harry <br />presented testimony outlining the details of the violation. NOV CV-2002-013 was issued on July <br />5, 2002, specifically for failure to have a current insurance certificate on file. A copy of the <br />current insurance certificate was faxed to the office on July 29, 2002. Harry stated that <br />numerous other required records are still not on site and perhaps the NOV should not have beer <br />terminated. <br />Mr. Jerry Koblitz discussed the problems associated with maintaining records on site and also <br />pointed out that the insurance policy was for 13 years and was issued August 1, 2001. There <br />was constant insurance coverage on the site. <br />The Proposed Civil Penalty originally determined by the Assessment Officer for NOV CV-2002- <br />013was: <br />History <br />Seriousness <br />Fault <br />Number of Days <br />Good Faith <br />Penalty Assessed <br />Total proposed penalty <br />$0.00 <br />$0.00 <br />$250.00 <br />1 <br />0 <br />$250.00 <br />After hearing this testimony and considering the evidence presented, I have come to the <br />following conclusions: <br />