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The original permit under Colorado's Permanent Regulatory Program <br />was issued to U.S. Steel Company on October 11, 1983. Kaiser Coal <br />Corporation was the operator of the mine from 1986 to 1990. In <br />1990 the permit was transferred to Somerset Mining Company. <br />Somerset Mining Company completed the permit renewal for the second <br />five year term which was from October 11, 1988 to October 11, 1993. <br />Permit Revision No. 1 was submitted to the Division on June 4, 1990 <br />and approved on March 27, 1991. This revision proposed opening up <br />new portals to the B and C seams. Permit Revision No. 2 was <br />submitted to the Division on April 13, 1992 and approved on <br />September 25, 1992. This revision proposed the addition of 1792 <br />acres of adjacent federal coal to the Somerset Mine permit area. <br />On April 12, 1993, Somerset Mining Company's application for <br />renewal of a valid existing permit was deemed complete. The <br />application was approved on October 22, 1993. The new permit term <br />started on October 11, 1993 and is set to expire on October 11, <br />1998. <br />The permit was transferred a second time from Somerset Mining <br />Company to Pacific Basin Resources, A Division of Oxbow Carbon and <br />Minerals Inc. on August 31, 1995. A third Succession of Operator <br />and Transfer of Permit which will transfer the permit to Oxbow <br />Carbon and Minerals Group, Inc. is currently under review and <br />should be completed by June 30, 1996 <br />Since the last permit renewal there have been two notices of <br />violation issued to the Sanborn Creek Mine. However, prior to <br />renewal there were eight violations issued dating back to 1991. <br />The result of the violations issued during 1992 and 1993 is that a <br />pattern of violations was established. The Division reviewed the <br />pattern and, with some firm commitments from the operator to <br />increase their compliance, made a decision not to issue a Show <br />Cause Order to the Sanborn Creek Mine. Following is summation of <br />the violations received since the last renewal date. <br />C-94-002 was issue on January 10, 1994 for failure to meet <br />discharge effluent limitations. The violation was terminated on <br />March 21, 1994 and a total assessed penalty of $1500.00 was paid in <br />full on April S, 1994 <br />C-94-007 was issued on April 14, 1993 for failure to conduct <br />surface and groundwater monitoring as required by rule 4.05.13 and <br />the permit application. The violation was terminated on June 7, <br />1994 and a total assessed penalty of $1700.00 was paid in full on <br />August 4, 1994. <br />II. Summary of Chan4es Requested <br />There are a couple of changes being requested as a result of this <br />review, including changes to the reclamation bond which is <br />discussed in more detail in section IV of this document. Once the <br />-2- <br />