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-9- FINDINGS OF THE COLORADO MINED LAND RECLAMATION DIVISION FOR THE GRASSY GAP MINE Exalanation of Findings I. Legal, Financial and Compliance Information Rule 2.03 The legal, financial, and compliance information sections of the permit application can be found on pages I-1 through I-18. Pursuant to Rule 2.07.6(2)(9), and on the basis of information submitted by the applicant, the Division finds that the Rockcastle Company does not own or control any operations which are currently in violation of any law, rule, or regulation, or any provision of the Surface Mining Control and Reclamation Act or the Colorado Surface Coal Mining Reclamation Act, with the exception of the following violations which are currently in the process of being corrected. NOV 83-35 was issued by the Division on December 21, 1983, for a sediment pond at Pit No. 1 having insufficient storage capacity and for not having appropriate dewatering structures. At an assessment conference on February 21, 1984, the NOV was modified to clarify that the nature of the violation was unapproved discharge and failure to adequately maintain the sediment pond. In June, 1984, eight notices of violation were issued, for sediment control, topsoil and reclamation related problems. Pursuant to Rule 2.07.6(1)(b), prior to permit issuance, the operator will be required to submit proof that the violations have been corrected, are in the process of being corrected or that the applicant has filed and is pursuing in good faith a direct administrative or judicial appeal. Pursuant to Rule 2.07.6(2)(h), the Division finds that the Rockcastle Company does not own or control and has not controlled mining operations with a demonstrated pattern of willful violations of the Act of such nature, duration, and with such resulting irreparable damage to the environment as to indicate an intent not to comply with the provisions of the Act.