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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, Colorado 80203 <br />Phone: (303)866-3567 <br />FAX: (303) 832-8106 <br />SETTLEMENT AGREEMENT JUSTIFICATION <br />Lorencito Coal Company, LLC <br />Lorencito Mine -Permit Number C-96-084 <br />Notice of Violation # CV-2002-002 <br />Carl B. Mount, Conference Officer. <br />DIVISION OF <br />MINERALS <br />GEOLOGY <br />RECLAMATION <br />MINING•SAFETY <br />Bill Owens <br />Governor <br />Greg E. Walther <br />Executive Director <br />Michael B. Long <br />Division Director <br />The Notice of Violation (NOV), CV-2002-002 was issued on February 13, 2002. The NOV was issued for <br />the following problem: <br />Failure to notify, 30 days before initiation of blasting, in writing, all residents or owners of dwellings or <br />other structures, within one-half mile of the permit area, how to request apre-blast survey. <br />On Apri! 9, 2002, an Assessment conference was held at 1313 Sherman Street, Room 215, Denver, <br />Colorado, 80203. In attendance, in addition to the Conference Officer, were Mr. Kent Gorham <br />representing the Division of Minerals and Geology (Division) and Mr. Tom Martinez Jr. and Mr. Bruce <br />Addington representing Lorencito Coal Company, LLC (Lorencito). Kent Gorham presented testimony <br />outlining the details of the violation as stated above. Lorencito presented reasons for limiting or eliminating <br />the civil penalty of $2,300 initially assessed for the violation. These reasons pertained to seriousness of <br />the violation, fault and good faith efforts conducted by Lorencito to correct the problem. <br />The Proposed Civil Penalty by the Assessment Officer for NOV CV-2002-002 was: <br />^ History $300.00 <br />Seriousness $1,000.00 <br />^ Fault $1,000.00 <br />Good Faith 0.00 <br />Total Penalty Proposed $2,300.00 <br />After hearing the testimony and considering the evidence presented, I have come to the following <br />conclusions: <br />Historv <br />A $300.00 penalty is appropriate for history. <br />Seriousness <br />I concur with the Assessment Officer in that, it is incumbent upon the operator to ensure that written <br />notification to property owners is provided prior to initiation of blasting. Failure to do so can compromise <br />the results of future surveys. <br />