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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman SL, Room 215 <br />Denver, Colorado 80203 A I v I S 7 0 N O F <br />Phone: (303) 866-3567 Nt j N)r jt/•_ L $ <br />FAX: 1303) 832-8106 & <br />GEOLOGY <br />RECLAMATION <br />MI NING•SAFETY <br />bill Owens <br />Governor <br />Greg f. Walther <br />SETTLEMENT AGREEMENT JUSTIFICATION Executive Director <br />Picketwire Processin , LLC Ronald W. Cattany <br />g Aging Division Director <br />New Elk Mine-Permit No: C-81-012 <br />Notice of Violation No: CV-2002-010 <br />James B. McArdle, Conference Officer ~~ <br />The Notice of Violation CV-2002-010 was issued on June 24, 2002 failure to conduct hydrologic <br />monitoring in accordance with the approved plan. <br />On October 1, 2002, an Assessment Conference was held at 1313 Sherman Street, Room 419, <br />Denver, Colorado. In attendance, in addition to the Conference Officer, were Mr. Ronald <br />Thompson and Mr. Jerry Koblitz representing Basin Resources and Mr. Kent Gorham <br />representing the Division. Kent presented testimony outlining the details of the violation, which <br />involved the following; <br />Failure to report field readings for May 2001 for PAW-1, PAW-2, PAW-8 and PAW-9. <br />Failure to report water level and field readings for NEW-2, NEW-3, and NEW-4 for Oct. and Nov. <br />Failure to sample and report data for the annual sample for NEW-2, NEW-3 and NEW-4. <br />Failure to report water level for TH-201, TH-202, and TH-203 for Oct. and Nov. <br />On October 19, 2001, Ron sent a letter that the site was becoming operational. This triggered <br />more frequent monitoring. <br />Mr. Jerry Koblitr explained that the Failure was due to a misunderstanding. The prep plant was <br />not in operation and mining had not commenced, therefore no underground or surface water <br />was being impacted. The company was starting a loadout on site, mining ceased in 1996. The <br />previous required sampling and reports were provided to the Division. There was no <br />environmental damage as a result of this error. <br />The Proposed Civil Penalty originally determined by the Assessment Officer for NOV CV-2002- <br />010was: <br />History $0.00 <br />Seriousness $250.00 <br />Fault $500.00 <br />Number of Days Penalty Assessed 1 <br />Good Faith 0 <br />Total proposed penalty $750.00 <br />