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r <br /> SETTLEMENT AGREEMENT <br /> THIS SETTLEMENT AGREEMENT is entered into this day of <br /> , 1991 between the Mined Land Reclamation Divi- <br /> sion ( "Division" ) and Mid-Continent Resources, Inc. <br /> ( "Mid-Continent" ) . <br /> RECITALS <br /> 1. On or about July 17, 1990 the Division issued an Order <br /> to Show Cause Why Permit Should Not Be Suspended or Revoked <br /> ( "Order to Show Cause" ) to Mid-Continent. The Order to Show <br /> Cause identified Notice of Violation ( "NOV" ) C-89-003, NOV <br /> C-89-013, NOV C-89-017, Cessation Order ( "CO" ) C-89-019, NOV <br /> C-90-001, and NOV C-90-002 as constituting a pattern of viola- <br /> tions justifying permit suspension or revocation. <br /> 2. On October 23, 1990 the Division issued NOV Nos. <br /> C-90-049, C-90-050, C-90-051, and C-90-052 to Mid-Continent for <br /> several violations related to sediment control and road mainte- <br /> nance. The Division subsequently assessed a civil penalty in the <br /> amount of $4,000 against Mid-Continent for the four violations. <br /> 3 . The Division has reviewed several aspects of Mid- <br /> Continent ' s permit pursuant to the mid-term review process. The <br /> mid-term review revealed the following deficiencies with Mid- <br /> Continent ' s permit and operation: <br /> a. The amount of the performance bond on Mid-Continent ' s <br /> permit was set at $3,000,000.00 in 1988, and is currently <br /> insufficient to to assure the completion of the reclamation <br /> plan if the work had to be performed by the State in the <br /> event of forfeiture. In order to be adequate, the amount <br /> of the bond must be increased by $800,000.00 to a total of <br /> $3,800,000.00 . <br /> b. The current state of certain roads, road fills, and <br /> portal benches is contributing non-point source pollution <br /> in the form of sediment to Coal Creek and its tributaries, <br /> Dutch. Creek and Sear Creek. <br /> c. Min-Continent has not provided evidence of c:ucrent <br /> liability insurance on the mine site as required by Rule <br /> 2. 03 . 9 . <br /> 4. Mid-Continent has recently determined that it is unable <br /> to continue coal mining operations at the Coal Basin Mine and is <br /> interested in selling the mine to a buyer able to perform surface <br /> coal mining operations at the site in full compliance with all <br />