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STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Department of Natural Resources I J 13 Sherman 51., Room 215 Dem~er, Colorado 80203 Phone: (3071 866 3567 FAX: (7031 832-8106 SETTLEMENT AGREEMENT JUSTIFICATION Twentymile Coal Co., Foidel Creek, C-82-056,CV-97-011 James B. McArdle, Conference Officer I~~~~ DEPARTMENT OF NATURAL RESOURCES Rov Romer Governor lames S. Lochhead Eeeculrve Duraor M¢hael B. Long Division DneUOr The Notice of Violation CV-97-O1 I was issued for implementing a revision prior to receiving final approval, and failure to conduct mining activities in accordance with the approved mine plan. Mr. Kent Gorham, of the Division of Minerals and Geology, presented testimony and documentation that mine development had commenced on a submaln prior to approval of a pending Permit Revision (PR-04). This Permit Revision detailed the mining activities which had already proceeded. The approved mine plan, approved under Permit Revision PR-03, was not being followed during the development of the new submain entry. The Proposed civil penalty for NOV CV-97-011 was: History $0.00 Seriousness $1,250.00 Fault $1,250.00 Number of Days Penalty Assessed 4 Good Faith $500 Total Civil Penalty Proposed by the Assessment Officer was $9,500.00 Mr. Rick Mills, of the Twentymile Coal Company, provided a mine map and discussed, in part, the location of the mine development activities, the approved plan and stated that minor deviations and adjustments to design -ocations aze typical and to be expected in the course of mining activities. The development activities noted in this NOV could not and in fact did not cause serious damage to man made structures or the environment. Mr. Mills also discussed the faulty NOV notification which resulted in the NOV being received by mail on August 12, 1997, while the NOV was terminated on August 11, 1997. The operator received the NOV by fax on Friday, August 8, 1997 at 4:23P.M.