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<br /> <br />WELBORN, DUFFORD, BROWN ~ TOOLEY <br />Mr. Robert Shukle <br />Mr. David C. Shelton <br />September 30, 1986 <br />Page 2 <br />(b) The Water Quality Control Division issued its <br />Notice of Violation and Cease and Desist Order dated August 1, <br />1986, alleging the same conditions constituted violations of <br />Snowmass's CDPS Permit No. CO-0029599 for the North Thompson <br />Creek Mine. <br />(c) An assessment conference was held on the MLRD NOV <br />on August 26, 1986, at which Snowmass asserted certain defenses <br />and legal arguments regarding the validity of MLRD's NOV and <br />the proposed civil penalty. <br />(d) On August 28, 1986, Snowmass filed its Answer to <br />Notice of Violation and Request for Hearing with the Water <br />Quality Control Division, asserting certain defenses and <br />describing a detailed plan in response to the WQCD NOV. <br />(e) Without further hearing or any resolution of the <br />legal issues related to either of the NOVs, the Water Quality <br />Control Division, the Mined Land Reclamation Division and <br />Snowmass Coal Company desire to enter into an agreement to <br />resolve the NOVs and to define Snowmass 's obligation regarding <br />certain other matters. <br />(f) Both NOVs shall be deemed final and not subject <br />to further administrative or judicial proceedings or appeals. <br />Neither MLRD nor WQCD shall assess, nor shall Snowmass be <br />liable for payment of, any civil penalties with respect to <br />either NOV. This settlement agreement shall not be considered <br />a determination or admission of any of the issues which have <br />been or could have been raised by Snowmass as defenses to the <br />NOVs. <br />(g) Snowmass shall implement its plan to separate any <br />groundwater flows in the B-seam workings from those in the <br />No. 1 Mine A-seam workings, by means of underground seals or <br />dams such that flow from the B-seam workings will not enter <br />into such A-seam workings ,.and will not become part of a <br />discharge from the discharge points permitted in Permit <br />No. CO-0029599. If necessary, Snowmass shall submit a revision <br />to its MLRD permit for this purpose for approval by the MLRD. <br />(h) Snowmass agrees to perform a reconnaissance level <br />study with the objective of determining whether there are <br />surface connections to the B-seam workings which are <br />contributing the springtime increase in groundwater flows in <br />