2008-09-29_ENFORCEMENT - C1981035

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SETTLEMENT AGREEMENT JUSITIFICATION GCC Energy, LLC King I and II Mines; C-1981-035 Notice of Violation No. CV-2008-002 Anthony Waldron, Conference Officer Notice of Violation Number CV-2008-002 was issued on July 3, 2008 and resulted from failure to conduct surface coal mining and reclamation operations as described in the approved application and failure to have maps or plans in the approved application that clearly and accurately show the land to be affected and the areal extend of the underground workings. There were two abatement steps to be completed by July 11, 2008 and by August 11, 2008. Abatement step No. 1 was to submit an application for a technical revision to the permit for a mine plan change that pertains to the portion of the operation to which the violation notice applied. Step No. 2 was to receive approval of the technical revision submitted in Step No. 1. The revision (TR-14) was submitted on June 23, 2008 and a decision to approve the revision was made on July 21, 2008. On September 18, 2008, an Assessment Conference was held at the Division of Reclamation, Mining and Safety Offices located at 1313 Sherman Street, Room 215 in Denver, Colorado. In attendance were, in addition to the Conference Officer, Mr. Tom Kaldenbach and Mr. Dan Hernandez representing the Division of Reclamation, Mining and Safety and Mr. Michael Savage representing GCC Energy, LLC. Tom Kaldenbach provided background and detailed the nature of the violation including follow up measures that have been implemented. Michael Savage discussed the events that led to the operator conducting mining operations outside of their approved mine plan area including their belief that they are still within the approved "affected area". The proposed civil penalty originally determined by the Assessment Officer for CV- 2007-002 was: History $0.00 Seriousness $250.00 Fault $500.00 Number of Days of Penalty Assessed 1 Good Faith $-250.00 Total proposed penalty $500.00