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BEFORE THE MINED LAND RECLAMATION BOARD <br />STATE OF COLORADO <br />IN THE MATTER OF COTTER CORPORATION, N.S.L., SCHWARTZWALDER <br />MINE, PERMIT No. M -1977 -300 <br />JOINT STIPULATION <br />The Division of Reclamation, Mining and Safety ( "Division ") and Cotter Corporation <br />(N.S.L.) ( "Cotter ") through their undersigned counsel submit this joint stipulation for <br />consideration by the Mined Land Reclamation Board ( "Board "). Specific details <br />regarding this violation are contained in the Division's inspection report dated July 5, <br />2012 and included with this stipulation as Attachment A. In support of their joint <br />stipulation, the Division and Cotter state the following: <br />1. Cotter admits it violated, pursuant to section 34 -32 -124, Hard Rock <br />Regulation 1.9 and section 34 -32 -109 of the Mined Land Reclamation Act ( "Act ") by <br />proceeding with work proposed in Technical Revision 20 ( "TR -20 ") prior to the <br />approval of TR -20 by the Division. Cotter admits it was aware that it did not have the <br />Division's approval of the activities outlined in TR -20 but nevertheless allowed its <br />contractor to proceed with the unapproved activities in order to avoid violation of its <br />Colorado Department of Public Health and Environment discharge permit. <br />2. Cotter agrees to the issuance of a Cease and Desist Order that requires <br />the operator to cease and desist all unapproved mining and reclamation activities on <br />affected land, as defined in the Act, at the Schwartzwalder Mine, including but not <br />limited to, mining and reclamation activities approved by other Federal /State/Local <br />government agencies but not yet approved by the Division. Cotter is to conduct no <br />such further mining and reclamation activities at the Schwartzwalder Mine without <br />prior consultation with and written approval from the Division. <br />3. Cotter agrees to a civil penalty of $4,000 (four days of violation at <br />$1,000 per day, counted from the day the operator commenced unpermitted <br />reclamation activities at the Schwartzwalder Mine through the date the operator <br />ceased such activities). As of the date that the operator ceased such reclamation <br />activities, the operator was no longer in violation of the Act with respect to TR -20. <br />Upon payment in full of the civil penalty this violation will be deemed fully resolved. <br />4. This violation agreement shall not be used to provide a waiver of any <br />positions with respect to any other proceeding or matter. <br />1 <br />ATTACHMENT A <br />