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(ti) Establish to the Division that <br />the applicant has filed and is presently pursuing, in <br />good faith, a direct administrative or judicial appeal <br />to contest the validity of that violation. If the <br />administrative or judiciial hearing authority either <br />denies the appeal or affirms the violation, then any <br />surface coal mining operations being conducted under a <br />permit issued according to 2,07.6(1) shall be <br />immedialtely terminated, unless and until the provisions <br />of 2.07,6(1)(b)(i) are satisfied. <br />All the Notices of Violation, Cessation Orders and Civil Penalties have <br />been addressed in a petition for appeal filed in Circuit Court in Vernon <br />County, Missouri. The Division can issue the transfer of permit because <br />Central West Coal Corporation has filed and is presently pursuing a <br />judicial appeal to contest the validity of the Violations and Civil <br />Penalties. However, continuation of mining at the Hawk's Nest Mine after <br />the permit has been transferred to Blue Horizon Mining, Inc: is <br />conditioned upon Central West Coal Corporation satisfying Rule <br />2, 07,6(1)(b)(i) and resolving the concerns in Missouri. If an <br />administrative or judicial authority in Missouri denies the appeal or <br />affirms the violations after remand, mining operations at the Hawk's Nest <br />Mines will be immedialtely terminated until Rule 2. 07,6(1)(b)(i) is <br />satisfied. The permit will remain in effect during such period: <br />Due to these conditions under which the permit is to be transferred, a <br />stipulation has been added to the transfer approval. This stipulation <br />ensures that Blue Horizon Mining, Inc. is fully aware of the obligation <br />placed on Central West Coal Corporation to diligently pursue resolution <br />of the outstanding Violations and Civil Penalties in the State of <br />Missouri. Resolution is necessary in order for the Hawk's Nest Mining <br />Permit ifC-81-016 to remain in good standing and in order for mining <br />operations to continue. <br />STIPULATION: <br />BCQE-AD1FI7(fN MINING, INC. SHALL IMMEDIATELY TERMINATE ANY SURFACE <br />COAL MINING OPERATIONS UPON DENIAL OF ANY ADMINISTRATIVE OR _ <br />JUDICIAL APPEAL OR AFFIRMATION OF ANY VIOLATION AFTER REMAND <br />ATTRIBUTED TO CENTRAL WEST COAL CORPORATION, STAMPER COLLINS, OR <br />RONALD D. SMITH, OR IF THE APPEAL WHICH IS UNDER REVIEW BY THE <br />STATE OF MISSOURI ON THE DATE OF THIS APPROVAL OF TRANSFER OF <br />PERMIT IS NOT PURSUED IN GOOD FAITH. SURFACE COAL MINING MAY <br />RECOMMENCE, WITH RESPECT TO THIS STIPULATION, WHEN BLUE HORIZDN <br />MINING, INC. SATISFIES THE PROVISIONS OF RULE 2.07.6(1)(b)(i) AND <br />CRS 34-33-114(3). <br />Information submitted by Blue Horizon Mining, Inc. has demonstrated an <br />intent to comply with the requirements of 30 CFR Chapter VII, Subchapter <br />R, the Surface Coal Mining Reclamation Act, and regulations promulgated <br />pursuant to the act. <br />Based on the above information, the Division finds that Blue Horizon <br />Mining, Inc. will conduct operation of the Hawk's Nest East and West <br />Mines in accordance with the requirements of the Act and Regulations, and <br />the approved permit. <br />A replacement performance bond in the form of Certificates of Deposit, <br />for the amount of E621,000.00 had been submitted and approved. The <br />amount of this bond is equivalent to the bond of the original permittee. <br />