1996-06-07_GENERAL DOCUMENTS - C1981022

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The original permit under Colorado's Permanent Regulatory Program was issued to U.S. Steel Company on October 11, 1983 . Kaiser Coal Corporation was the operator of the mine from 1986 to 1990. In 1990 the permit was transferred to Somerset Mining Company. Somerset Mining Company completed the permit renewal for the second five year term which was from October 11 , 1988 to October 11, 1993 . Permit Revision No. 1 was submitted to the Division on June 4 , 1990 and approved on March 27, 1991 . This revision proposed opening up new portals to the B and C seams. Permit Revision No. 2 was submitted to the Division on April 13, 1992 and approved on September 25, 1992 . This revision proposed the addition of 1792 acres of adjacent federal coal to the Somerset Mine permit area. On April 12 , 1993 , Somerset Mining Company ' s application for renewal of a valid existing permit was deemed complete . The application was approved on October 22 , 1993 . The new permit term started on October 11, 1993 and is set to expire on October 11 , 1998 . The permit was transferred a second time from Somerset Mining Company to Pacific Basin Resources , A Division of Oxbow Carbon and Minerals Inc. on August 31, 1995 . A third Succession of Operator and Transfer of Permit which will transfer the permit to Oxbow Carbon and Minerals Group, Inc . is currently under review and should be completed by June 30, 1996 Since the last permit renewal there have been two notices of violation issued to the Sanborn Creek Mine. However, prior to renewal there were eight violations issued dating back to 1991 . The result of the violations issued during 1992 and 1993 is that a pattern of violations was established. The Division reviewed the pattern and, with some firm commitments from the operator to increase their compliance, made a decision not to issue a Show Cause Order to the Sanborn Creek Mine. Following is summation of the violations received since the last renewal date. C-94-002 was issue on January 10, 1994 for failure to meet discharge effluent limitations. The violation was terminated on March 21 , 1994 and a total assessed penalty of $1500. 00 was paid in full on April 8 , 1994 C-94-007 was issued on April 14 , 1993 for failure to conduct surface and groundwater monitoring as required by rule 4 . 05 . 13 and the permit application. The violation was terminated on June 7 , 1994 and a total assessed penalty of $1700. 00 was paid in full on August 4 , 1994 . II. Summary of Changes Requested There are a couple of changes being requested as a result of this review, including changes to the reclamation bond which is discussed in more detail in section IV of this document. Once the -2-