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Rationale for Conditional Approval of CN -01 <br />May Day Idaho Mine Complex, M- 1981 -185 <br />There have been five violations issued by the Board to the Applicant. The five violations, and <br />the associated cease and desist orders, corrective actions, and civil penalties, are described <br />below. <br />• Violation MV- 2009 -007 was issued on March 11, 2009, for the Idaho Mine, File No. M- <br />2006 -069. The violation was issued for failure to attain an approved permit prior to <br />commencing a mining activity. Specifically, the Applicant constructed a new access road <br />prior to including the road within an approved permit and thereby commenced an <br />unpermitted mining operation. The Board issued a cease and desist order. The Board <br />ordered corrective actions to bring the new access road into an approved permit and be <br />fully addressed by a reclamation plan and financial warranty. The Board ordered the <br />Applicant to post $56,233 financial warranty within 30 days. The Board assessed a civil <br />penalty in the amount of $7,600, with $2,500 suspended if the Applicant paid the bond <br />timely, $2,500 suspended if the Applicant attained the appropriate permit timely, and <br />the remaining $2,600 due within 30 days. The Applicant submitted the $56,233 <br />financial warranty and paid the $2,600 civil penalty in a timely manner. The corrective <br />action deadline has been extended, pending the review of the permit application. <br />Therefore, the Division was tracking the remaining $2,500, pending the Applicant's <br />compliance with the Board Order. <br />• Violation MV- 2009 -033 was issued on December 10, 2009, to the Idaho Mine, File No. <br />M- 2006 -069. The violation was issued for failure to comply with the cease and desist <br />order of Violation MV- 2009 -007. Specifically, the Applicant continued to use the new <br />access road to advance a mining activity. The Board increased the scope of the cease <br />and desist order. The Board ordered corrective actions to bring the new access road <br />into an approved permit and be fully addressed by a reclamation plan and financial <br />warranty. The Board found the existing $56,233 financial warranty subject to forfeiture. <br />The Board assessed a civil penalty in the amount of $3,500 and suspended the entire <br />civil penalty, pending the Applicant's compliance with the Board Order. However, due <br />to the Applicant's failure to comply with the cease and desist order for Violation MV- <br />2009 -007, the Board ordered the Applicant to immediately pay the outstanding $2,500 <br />civil penalty from the previous violation. The Applicant paid the $2,500 civil penalty in a <br />timely manner. Therefore, the Division is tracking the $3,500 outstanding civil penalty. <br />The remaining corrective action deadlines have been extended, pending the review of <br />the permit application. <br />• Violation MV- 2009 -035 was issued on December 10, 2009, to the May Day Mine, Permit <br />No. M- 1981 -185. The violation was issued for failure to comply with the conditions of <br />an approved permit. Specifically, the Applicant constructed a portal at the May Day 1 <br />level, not approved by the existing mine and reclamation plan. The Board issued a cease <br />and desist order. (NOTE: Previous cease and desist orders had been issued to the Idaho <br />Mine and were not applicable to the May Day Mine.) The Board ordered corrective <br />actions to update the existing reclamation plan and financial warranty to address the <br />new portal. The Board assessed a civil penalty in the amount of $3,500 and suspended <br />all but $1,000, pending the Applicant's compliance with the corrective actions. The <br />6 <br />