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3. On February 7, 2008, the Division called the Operator to remind them of the <br />required bond for the site. The Operator indicated mining activities had begun at the site <br />with approximately four acres of disturbance. <br />4. On February 27, 2008, the Division inspected the Parker-Dersham Resource <br />site and determined the actual disturbed area with a Trimble GeoExplorer Global Positioning <br />System Unit was approximately 11.3 acres within the proposed permit area as a result of <br />mining activities. <br />5. The Division issued a field Cease and Desist Order on March 4, 2008 based on <br />the data collected at the site. <br />6. The Division determined the seriousness of the matter included the following: <br />• The mining activities included vegetation, topsoil and overburden <br />stripping, stockpiling of topsoil and overburden, dewatering, removal of an <br />estimated volume of 50,000 cubic yards of sand and gravel material to the <br />Baseline Resources site; and <br />• Possible ground water effects from dewatering activities. <br />7. Counsel for the Operator indicated the Notice of Violation issued by the <br />Division alerted the Operator to a problem with their internal process as previous warnings in <br />this matter from the Division were not reported outside of the immediate manager. The <br />Operator has taken a number of steps to make sure this does not happen again, by adding two <br />more people to the process to make sure there are checks and balances so that when notices <br />of violations or warnings from the Division are sent out they will go not only to the <br />immediate manager, but to the property coordinator and counsel for the Operator. In future <br />the Operator will not begin mining until they receive documentary confirmation that the <br />permit has been issued and will check with Mr. McFarland to verify the bond has been <br />posted with the Division. Future warnings from the Division will not go to the person <br />responsible for complying but to Mr. McFarland. <br />8. Counsel for the Operator readily admitted this was the Operator's fault. The <br />Resource Manager, Jeff Gregg, for the Operator for this site was overwhelmed and felt he <br />could handle the issue without involving the rest of the team. The Operator has always <br />prided itself on its regulatory efforts. The Operator has ceased all mining activity on the <br />property. <br />9. The Operator provided the $974,000.00 performance and financial warranty to <br />the Division on March 7, 2008. <br />10. The Division expended 20 hours of staff time at $56.64 per hour to investigate <br />the Operator's violation in this matter. <br />Hall-Irwin Corporation 2 <br />M-2006-003