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r. <br />BEFORE THE MINED LAND RECLAMATION BOARD <br />NOTICE OF VIOLATION NO. CV-2007-01, CIVIL PENALTY and <br />PROPOSED DECISION FOR BOND INCREASE <br />I <br />I <br />DIVISION OF RECLAMATION, MINING AND SAFETY'S BRIEF IN <br />SUPPORT OF NOTICE OF VIOLATION NUMBER CV-2007-01, CIVIL <br />PENALTY and PROPOSED DECISION CONCERNING BOND <br />INCREASE <br />i <br />BASIN RESOURCES INC., Permit No. C-1981-013 <br />This matter comes before the Mined Land Reclamation Board ("Board" or <br />"MLRB") for hearing on Notice of Violation ("NOV") CV-2007-0, <br />Imposition of Civil Penalty and Proposed Decision for a Bond Increase. <br />The Division of Reclamation, Mining and Safety ("Division" or "DRMS") <br />issued the NOV for failure of Basin Resources Inc. ("Basin Resources") to <br />pay compensation for material damage caused by subsidence related to its <br />underground mining operation in violation of § 34-33-121 and 2 CCR 407-2, <br />Rule 4.20. Basin Resources objects to the NOV, asserting among other <br />things, that a settlement agreement entered into by the Division, Board, Ann <br />and Jim Tatum and Basin Resources in February 2003 precludes the NOV. <br />For the reasons stated below, the Division disagrees with Basin Resources <br />and states that the NOV was properly issued. <br />I <br />In addition, the issues of subsidence, material damage, and the amount of <br />compensation owed ;have been determined and affirmed by the Colorado <br />courts. Specifically,' the district court in Las Animas County found that <br />Basin Resources' mining operation caused material subsidence related <br />damage and that Basin Resources must compensate Ann and Jim Tatum <br />("Tatums") $622,006 for the diminution in value to their residence because <br />of such damage. The Colorado Court of Appeals affirmed the trial court's <br />decision, Tatum v. Basin Resources, Inc. 141 P.3d 863 (Colo. App. 2005), <br />and the Colorado Supreme Court denied Basin Resources' petition for writ <br />of certiorari on November 17, 2005. The Court of Appeals issued the <br />mandate on August 30, 2006. <br />i