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Mike Long, Director, Minerals and Geology <br />Page 3 <br />CONFIDENTIAL <br />On March 25, 1992, the Board and American Shield entered a <br />settlement agreement in which American Shield committed to apply- <br />ing for a reclamation only permit for the Fruita Mine, including <br />documentation that the cameo bench and highwalls were constructed <br />prior to the enactment of SMCRA on August 3, 1977; that the back- <br />filled and graded area, the bench area, and the spoils below the <br />bench were compatible with the approved reclamation land use <br />plan; that remaining highwall remnants were stable and did not <br />pose a threat to human health and safety or the environment; and <br />that disturbance of spoils would result in instability of the re- <br />maining spoil or increase the hazard to public health and safety. <br />DMG committed to initiating rulemaking to incorporate language <br />similar to that in OSM's regulations granting highwall elimina- <br />tion waivers for highwalls existing prior to August 3, 1977. <br />In accordance with the settlement agreement, American <br />Shield applied for a reclamation-only permit and DMG proposed to <br />issue the permit. AFO then notified DMG that this action was <br />contrary to the AFO's 1991 ten-day notice requiring elimination <br />of the highwall, that approval of the reclamation-only permit <br />would constitute an inappropriate response that failed to correct <br />NOV 91-024, and that this would cause AFO to order a federal <br />inspection. AFO also advised DMG that approval of the <br />reclamation-only permit was unacceptable because the Fruita Mine <br />was not a "remining" operation but "involved a continuously mined <br />area." <br />The Board and American Shield subsequently modified the <br />settlement agreement on December 16, 1992, based on future prom- <br />ulgation of a State regulation waiving the highwall elimination <br />requirement for continuously mined areas. AFO then notified DMG <br />that a provision of a State program could not be used until ap- <br />proved by OSM and requested the Board to void the settlement <br />agreement. Based on DMG's recommendation, the Board revoked the <br />agreement on September 22, 1993; DMG reactivated the 1991 NOV re- <br />quiring American Shield to eliminate the highwall by December 14, <br />1999; and, when American Shield did not eliminate the highwall by <br />that date, DMG issued a Failure to Abate Cessation Order (FTACO) <br />on December 15, 1993. On March 23, 1994 the Board revoked Ameri- <br />can Shield's interim Permit No. C-79-60 based on the FTACO and <br />forfeited the remaining $36,000 bond amount. On that date, the <br />Board also promulgated a rule exempting continuously mined areas <br />from the highwall elimination requirement if the highwall existed <br />prior to August 3, 1977 and continuous mining operations had been <br />conducted in the area since that date. <br />