2004-03-19_GENERAL DOCUMENTS - C1980004

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Colorado. LEI filed for bankruptcy on Mazch 30, 2001, and operated the mine for a period of time as a debtor in possession. hi May 2003, certain LEI assets including the McClane Canyon operation were acquired via bankruptcy auction by Central Appalachia Mining, LLC (CAM). On June 26, 2003 the Division received an application for Succession of Operators (SO-3) to transfer the pernut~from LEI to CAM. The Division identified a number of adequacy issues during review of the SO-3 application. By the end of 2003, CAM had submitted an acceptable replacement bond, and all adequacy issues had been resolved, with the exception that all required right of entry documentation had not been provided. Specifically, the Bureau of Land Management (BLM) had not been able to approve the transfer of Federal Coal Leases COC-0125439, COC-0125515, and COC-0125516, due to delinquent lease royalty payments owed by LEI. As a result, the Division has been unable to issue a proposed approval decision on the SO-3 pemut transfer application to CAM, and will be unable to do so, until this issue has been resolved and BLM approves the federal coal lease transfers. The McClane permit expired July 6, 2001, and has not yet been renewed. Application for renewal had been submitted in timely fashion by LEI, but issues associated with the LEI bankruptcy, as well as disruption associated with DMG's electronic imaging of all permitting documents and files, delayed the renewal review process. Renewal adequacy issues were resolved by August 2003, but issuance of a proposed decision to renew the pernut is on hold, pending approval of the permit transfer to CAM. The Division has chosen to proceed with the scheduled 2004 midterm permit review, despite the fact that the permit has not yet been renewed for the 2001-2006 pernrit term. There has been only one enforcement action issued for operations at McClane Canyon Mine since issuance of the current permit, in July 1997. NOV CV-99-006 was issued to Grand Valley Coal Company on June 28, 1999, for failure to perform quarterly water quality laboratory analyses. The NOV was properly abated, and was terminated on July 9, 1999. The assessed penalty was properly paid. The operation is in compliance with the terms and conditions of the approved permit. Section II Status of Stinulations There have been no new stipulations attached to the permit subsequent to issuance of the Febntary 19, 1999 Mid-Term Permit Review. Prevously resolved Stipulations 22, 23, 24, 25, 28 and 29 aze discussed in that document. Stipulations imposed and resolved prior to that time are addressed in the December 1996 Findings Document for Pernut Renewal No. 4. There are two acfive stipulations that were attached to the previous renewal pemut, and which remain in effect, Stipulation 26 and Stipulation 27. STIPULATION N0.26 -THE ANNUAL HYDROLOGIC REPORT (AHR) COVERING THE PREVIOUS WATER YEAR FOR THE MCCLANE CANYON MINE W1I,L BE SUBMITTED NO LATER THAN FEBRUARY 1 EACH YEAR.