ENFORCE36178

• Permit No: C1981012
• IBM Index Class Name: Enforcement
• Doc Date: 5/31/2001
• Doc Name: Notice of Proposed Civil Penalty & Certified Card
• Violation No.: CV2000011
• Media Type: D
• Archive: No

Proposed Civil Penalty Assessment
Pickelwire Processing LLC /The New Elk Mine
DMG Permit No. C-81-012
NOV CV-2000-O1I
Da[eNOV issued: 12/20/00
Date NOV submitted for proposed assessment: I/I8/01
Date proposed assessment prepared: (/21/01
Materials reviewed in conjunction with the preparation of this proposed civil penalty assessment were:
I. Copy of DMG NOV CV-2000-01 I, dated 12/20/00, including transmittal cover lever;
2. Copy of New Elk MR-83, dated 12/28/00 and received at DMG on 12/29/00;
3. Letter dated 12/29/00 from Bill Adams to David Berrv, received at DMG on (/04/01;
4. Copy of letter dated 1/8/01 from Johanna Cramer to Jetry Koblitz;
5. Copy of DMG NOV Extension Notice dated 1/8/01;
6. Copy of DMG Termination Notice dated 1/16/01.
History [Rule 5.04.5(3)(a)]:
No NOVs have been issued to Picketwve Processing LLC ("Picketwire") within the twelve month
period immediately preceding the date of issuance of the current NOV.
The History component of this assessment is therefore proposed at $0.
Seriousness [Rule 5.04.5(3)(6)]:
The Seriousness component of a proposed civil penalty assessment ntay range from $0 to $1750.
The amount assessed for Seriousness depends upon whether the permittee failed to comply with
an administrative standard or a performance standard. This NOV appears to have been written as
a failure to comply with the performance standards of CRS 34-33-] 13 and Rules 3.01, 3.02.1,
3.02.2, and 3.02.4(2)(6) requiring the maintenance of appropriate reclamation performance bonds.
In the case of a permittee's failure to comply with performance standards, the amount of the
Seriousness component is based upon two additional factors: (I) the probability of the occurrence
of the event which the violated standard is designed to prevent, and (2) the duration and extent of
the actual or potential damage in terms of area and impact upon the public and the environment.
(I) Rules 3.01, 3.02.1, 3.02.2, and 3.02.4(2)(6) and CRS 34-33-I 13 are, among other things,
designed to prevent the State of Colorado from assuming the mined land reclamation
liabilities of coal mining operators. The rules attempt to prevent this by requiring Colorado
coal mining operators to maintain appropriate reclamation performance bonds.
Picketwire's failure to have replaced its bond in a timely manner as requested by DMG
created the probability that DMG might have had to forfeit the faulty reclamation
performance bond and reclaim the disturbances associated with the New Elk Mine. Since this
did not occur, the situation is deemed to be moderately serious.
(2) The extent of the disturbed area at the New Elk Mine that DMG might potentially have had to
reclaim is estimated at approximately 190 acres.
The Seriousness component of this assessment is therefore proposed at $500.