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SETTLEMENT AGREEMENT JUSITIFICATION <br />Colowyo Coal Company <br />Colowyo Mine; C-1981-019 <br />Notice of Violation No. CV-2008-003 <br />Anthony Waldron, Conference Officer <br />Notice of Violation Number CV-2008-003 was issued on July 23, 2008 and resulted from <br />failure to obtain proper approval for the design of the Section 16 Pond Ditch extension <br />and failure to demonstrate compliance with Rule 4.05.9(2) for Section 16 Pond. There <br />were three abatement steps to be completed by September 15, 2008. Abatement step No. <br />1 was to obtain proper approval for the section 16 Pond Ditch extension from the <br />Division. Step No. 2 was to halt construction until proper approval was obtained and <br />Step 3 was to not allow water to be directed onto the Section 16 Pond Ditch extension <br />until proper approval was obtained. The violation has been terminated. <br />On October 3, 2008, an Assessment Conference was held at the Division of Reclamation, <br />Mining and Safety Offices located at 1313 Sherman Street, Room 215 in Denver, <br />Colorado. In attendance were, in addition to the Conference Officer, Mr. Jim Stark and <br />Ms. Sandra Brown representing the Division of Reclamation, Mining and Safety and Mr. <br />Tay Tonozzi and Mr. Kurtis Blunt representing Colowyo Coal Company. <br />Jim Stark provided background and detailed the nature of the violation including follow <br />up measures that have been implemented. <br />Tay Tonozzi and Kurtis Blunt discussed the events that led to the operator failing to <br />obtain proper approval prior to beginning installation of the Section 16 Pond Ditch <br />extension. <br />The proposed civil penalty originally determined by the Assessment Officer for CV- <br />2007-003 was: <br />History $0.00 <br />Seriousness $750.00 <br />Fault $500.00 <br />Number of Days of Penalty Assessed 1 <br />Good Faith $0.00 <br />Total proposed penalty $1250.00 <br />After hearing this testimony and considering the evidence presented, I have come to the <br />following conclusions: