2011-09-22_ENFORCEMENT - C1982056 (2)

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Background TWENTYMILE COAL, LLC - FOIDEL CREEK MINE (C -82 -056) NOV CV- 2011005 ADDITIONAL RELEVANT INFORMATION As a result of a complaint by an adjacent property owner (Jay Wagner), an inspector (Dustin Czapla) for the Colorado Division of Reclamation, Mining and Safety — Minerals Group (CDRMS) conducted inspections of the Deakins Pit (Permit M- 2001 -060), operated by 3B Enterprises (Steve Baker), and the Ross Pit (Permit M- 1990 -134), operated by Brower Brothers Construction (Bud Bower). The inspections resulted in a determination by the Minerals Group Inspector, that materials containing coal and coal waste had been improperly imported to the two pits, where these materials were stockpiled, handled, and may have been used as pit fill material (Deakins Pit only). Through conversations with the pit operators, it was determined that these materials may have originated from the Foidel Creek Mine, and were transported to the pits by Bower Brothers. A subsequent joint inspection (copy attached for reference) by the Minerals Inspector and an inspector from the Coal Group (Jason Musick) documented the characteristics and estimated rough volumes for the imported materials. Materials samples (non- representative bag samples) were also taken at the time of the inspection. Based on the observations of the inspectors during this inspection, a preliminary determination was made that some of the imported material would be considered "underground - development waste ", as defined by Rule 1.04(143), and some of the material would be considered "non- coal waste ". Subsequent to CDRMS review and discussion of the inspection reports and the associated information, the CDRMS issued a Notice of Violation (NOV CV- 2011005) to Twentymile Coal, LLC (TC), the nature of which is summarized by the following language from the NOV: Failure to place all underground development waste in existing disposal areas approved by the Division within the Permit Area. Failure to dispose of non -coal wastes in a State approved disposal site operated in accordance with local, State, and Federal requirements. Failure to conduct all surface coal mining and reclamation operations only as described in the approved application. Failure to comply with the terms and conditions of the permit, all applicable performance standards of the Act, and the requirements of the Rules. TC had previously (2008) conducted a waste characterization and worked with a State approved disposal facility (Twin Landfill near Milner) to transport and dispose of mine road clean -up materials, consisting of aggregate, mud, and minor amounts of coal dust, rock dust, and debris. Due to its composition, this material is considered "non -coal waste ", and consequently, is suitable for off -site disposal in a State approved disposal facility consistent with Rule 4.11.4(2). TC contracted with Bower Brothers to load and haul these "non -coal waste" materials to the Twin Landfill. Based on conversations with Bower Brothers, resulting from and subsequent to issuance of the NOV, it was determined that, without TC's knowledge or consent, the contractor had diverted some of the "non- coal waste" material designated for disposal at the Twin Landfill to the Deakins and Ross Pits. TC's investigations, subsequent to issuance of the NOV, indicate that none of the imported materials have been disposed of at the Ross Pit, and that Bower Brothers has been using this pit area solely for processing and segregation of saleable coal materials from the waste. Any waste haulage to, and disposal of, waste materials that has occurred at the Deakins Pit appears to have resulted from an independent decision by Bower Brothers, and possible misinterpretation of an existing permit from the Minerals Group by 3B Enterprises, which allows for "disposal of materials containing not more than 5% coal ", which they