1993-11-15_PERMIT FILE - C1981017 (2)

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A. Pattern of Violations SETTLEMENT AGREEMENT THIS SETTLEMENT AGREEMENT is entered into this 22nd day of May, 1991 between the Mined Land Reclamation Division ( "Division ") and Mid - Continent Resources, Inc. ( "Mid- Continent "). RECITALS 1. On or about July 17, 1990 the Division issued an Order to Show Cause Why Permit Should Not Be Suspended or Revoked ( "Order to Show Cause ") to Mid - Continent. The Order to Show Cause identified Notices of Violation ( "NOV ") C -89 -003, NOV C -89 -013, NOV C -89 -017, Cessation Order ( "CO ") C-89-019, NOV C-90-001, and NOV C -90 -002 as constituting a pattern of violations justifying permit suspension or revocation. Although not specifically referenced, NOV C -89 -033 was also included as one of the six violations and one Cessation Order which constituted the pattern of violations between February, 1989 and January, 1990. 2. Mid - Continent responded to the Show Cause Order and maintains that the cited Notices of Violation were not caused by an unwarranted failure to comply, and do not constitute a pattern of violations justifying permit suspension or revocation. 3. On May 17, 1990, the Division issued NOV C -90 -014 and on July 26, 1990, the Division issued NOV C -90 -029. Both NOVs were related to road drainage maintenance. Both violations were abated and assessed penalties were paid by Mid - Continent. On October 23, 1990 the Division issued NOV Nos. C -90 -049, C -90 -050, C -90 -051 and C -90 -052 to Mid- Continent for several violations related to sediment control and road maintenance. The Division subsequently assessed a civil penalty in the amount of $4,000.00 against Mid - Continent for the four violations. The Division has not made a separate finding of a pattern of violations, nor made a determination that the above listed violations were caused by a willful or unwarranted failure to comply. B. Reclamation Bond A current appraisal of the real property or any additional real property which secures the performance bond has been requested by the Division in its recent mid -term review. Such appraisal, to be performed by a person agreed upon by the parties, is required before Mid - Continent may resume active mining operations.