ENFORCE36443

• Permit No: C1981022
• IBM Index Class Name: Enforcement
• Doc Date: 4/5/2006
• Doc Name: Settlement Agreement
• From: DMG
• To: Oxbow Mining LLC
• Violation No.: CV2006001
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
Department of Natural Resources
137 3 Sherman St., Room 215 C O I, Q RA ],~ O
Denver, Colorado 80203 D 7 v t 5 7 o N O r
Phone: [phone] M I N ~RA L S
FAX: [phone] G E O L O G Y
AEC LANATION•NINING
SAiETT•SLIENLE
Bill Owens
Governor
Russell George
' Executive Director
SETTLEMENT AGREEMENT JUSTIFICATION Ronaidw.Cattany
Oxbow Mining, LLC Division Direc7or
Sanborn Creek and Elk Creek Mine\C-1981-022 Natural ReEOUrce 7ruEtee
Notice of Violation No: CV-2006-001 G~
James McArdle, Conference Officer
Notice of Violation Number CV-2006-001 resulted from a January 18, 2006 inspection for a failure to
permit a methane degas well and to submit a bond for this well. Specifically, Oxbow Mining drilled a
methane degas well at the Hubbard Creek Fan site without the proper approvals.
On March 21, 2006, an Assessment Conference was held at the Division of Minerals and Geology office
at 1313 Sherman Street, Denver, Colorado. In attendance, in addition to the Conference Officer, was Mrs.
Sandra Brown and Mr. James Stark representing the Division and Mr. James Kiger representing the
operator.
Required abatement included:
1. Submitting a Minor Revision to the Division adding the well to the appropriate permit text and
drawing 3.02-M1.
2. Submit a completion log for the well.
3. Submit the appropriate bond.
4. Approval of the Minor Revision.
Jim Stark detailed the nature of the violation and the particulars regarding technical revision 51 and 53. In
particular, TR51 permitted the water transfer from the D seam to the B seam using one drill hole to each.
The TR indicated that an extra drill hole to the B seam might be necessary in the event the drill did not
encounter the B seam workings. Final drilling resulted in a drill hole to both the D and B seams, an extra
utility hole was completed and cased to the D seam and two drill holes that were not completed to the B
seam workings. No bond was calculated for TR 51
Technical revision 53 specifically permitted 15 gob vent holes. No methane degas hole was permitted for
the fan site in question. There is a bond associated with this task order.
Mr. Jim Kiger discussed aspects of TR's 49, 51, 52 and 53. TR 49 provided the design plan for the entire
fan site. The boreholes for the water transfer were within TR51 and outlined above and discussed in more
detail. TR 52 included the Hubbard Creek fan site clean water ditch and sediment control as built design.
Finally, TR 53 was discussed including the differences between a gob vent borehole and a utility bore
hole.
Basically, the company did not feel that completing the utility hole was a significant deviation from the
drilling as approved in TR 51. It was not completed as a gob vent bore hole and it was noted that the
drilling operations covered in TR 51 did not have a bond associated with the activity. Oxbow had every
intention of providing the Division with an as built design showing the final location of the drill holes
including completion and abandonment reports.
Office of Office of Colorado
Mined Land Rxiamation Active and Inactive Mines Geological Survey