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COLORADO DEPARTMENT OF PUBLIC. HEALTH AND ENVIRONMENT <br />WATER QUALITY CONTROL DIVISION <br />COMPLIANCE ORDER ON CONSENT <br />IN THE MATTER OF: MOUNTAIN COAL COMPANY, L.L.C. <br />CDPS PERMIT NO. CO-0038776 <br />GUNNISON COUNTY, COLORADO <br />NUMBER: IC-091201-1 <br />The Colorado Department of Public Health and Environment ("Department"), through the Water Quality <br />Control Division ("Division"), issues this Compliance Order on Consent ("Consent Order"), pursuant to the <br />Division's authority under §25-8-605, C.R.S. of the Colorado Water Quality Control Act (the "Act") §§ 25-8- <br />101 to 703, C.R.S., and its implementing regulations, with the express consent of Mountain Coal Company, <br />L.L.C. ("MCC"). The Division and MCC may be referred to collectively as "the Parties." <br />STATEMENT OF PURPOSE <br />1. The mutual objectives ofthe Parties in entering into this Consent Order are to resolve, without litigation, <br />the alleged violations cited herein by the Division, their associated civil penalties (as applicable), and the <br />violations reported or disclosed as a result of MCC's voluntary self-evaluation. <br />DIVISION'S FINDINGS OF FACT AND DETERMINATION OF VIOLATIONS <br />2. Based upon the Division's investigation into and review of the compliance issues identified herein, and <br />in accordance with §§ 25-8-602 and -605, C.R.S., the Division has made the following determinations <br />regarding MCC, the Facility and MCC's compliance with the Act and its implementing permit. <br />regulations. <br />3. At all times relevant to the violations cited herein, MCC was a Delaware limited liability company in <br />good standing and registered to conduct business in the State of Colorado. <br />4. MCC is a "person" as defined by § 25-8-103(13), C.R.S. and its implementing permit regulation, 5 CCR <br />1002-61, § 61.2(73). <br />5. MCC owns and operates the West Elk Mine, an underground coal mining operation producing <br />bituminous coal in the NE V4, Section 16, THS, R90W; approximately one mile east of the Town of <br />Somerset on Highway 133, Gunnison County, Colorado (the "Facility"). <br />6. The Facility is the subject of Colorado Discharge Permit System, Permit Number CO-0038776 (the <br />"Permit") which became effective June 1, 2004 and was modified and became effective May 1, 2009 <br />prior to being administratively extended until a renewal permit is issued.