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1UN-1.0-D1 02~OfiPt1 FROM-Colorado Division of Ninerala i Geology +13036663567 T-646 P.003/006 F-132 <br />BEFORE THE MINED LAND RECLAMATION BOARD <br />STATE OF COLORADO <br />FINDINGS OF FACT, CONCLUSIONS OF LAW, AND ORDER <br />IN THE MATTER OF POWDERHORN COAL COMPANY, FILE NO. C-1981-041, NOTICES <br />OF VIOLATION NOS. CV-2000-010 AND CV-2001-005, REQUEST FOR HEARING ON <br />NOTICES OF VIOLATION <br />THIS MATTER came before the Mined Land Reclamation Boazd ("the Board") on May 24, <br />2001, for a hearing p»*M~ant to Section 34-33-124, C.R.S. The Board, having wnsidered the <br />parties' legal briefs and other filings, the ustimony and exhibits of the parties, and having been <br />otherwise fully informed in the premises, hereby makes the following Findings of Fact and <br />Conclusions of Law, and enters the following Order: <br />FINDINGS OF FACT AND CONCLUSIONS OF LARI <br />1. Powderhom is permitted to conduct a coal mining and reclamation operation in <br />Mesa County, Colorado, Section 34, T10S, R98W, 6'" P.M., pursuant to Permit No. C-1981-041 <br />("Pernut'~. Powdahorn's operation is located on both federal (Bureau of Land Management <br />("BLM'~) and non-federal lands. - <br />2. Pursuant to the terms of its Permit, Powderhora has provided the Division with a <br />surety bond, Reclamation Bond #108486 ("Bond', from Frontier Insurance Company <br />("Frontier'. Because Powderhorri s coal mine is located on both BLM and non-federal lands, <br />and involves federal coal, the Bond is payable to both the Board and the Office of Surface <br />Mining, Reclamation and Enforcement. <br />3. On June 6, 2000, the U.S. Department of the Treasury issued a notice in the <br />Federal Register that it had revoked Frontier's.Certificate of Authority pursuant to 31 U.S.C. <br />§§ 9304 to 9308. - <br />4. As a result of the revocation of Frontier's federal Certificate of Authority, the <br />Division served on Powderhorn Notice of Violation ("NOV'~ No. CV-2000-010 for failure to <br />maintain an adequate reclamation bond and for failure to provide the fmancial.assurance required <br />by statue and regulation in violation of § 34-33-113, C.R.S., and Coal Rules 3.01, 3.021, 3.02.2 <br />and 3.02.4(2)(b), on December 14, 2000_ In NOV No. CV-2000-010, the Division ordered <br />Powdcrhorn to abate the violation by replacing the Frontier Bond with one of the following: a <br />reclamation bond issued by surety company possessing a current and valid federal Certificate of <br />Authority, an Irrevocable Letter of Credit issued by a bank acceptable to the Division in <br />compliance with all applicable statutes and regulations, or any other bond that complies with all <br />applicable statutes and regulations. <br />