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SETTLEMENT AGREEMENT <br /> THIS SETTLEMENT AGREEMENT is entered into this 21st day <br /> of May , 1991 between the Mined Land ec ama ion Division <br /> ("Division and -Continent Resources, Inc. ( "Mid-Continent" ). <br /> RECITALS <br /> A. Pattern of Violations <br /> 1 . On or about July 17 , 1990 the Division issued an Order to Show Cause <br /> Why Permit Should Not Be Suspended or Revoked ( "Order to Show Cause") to <br /> Mid-Continent. The Order to Show Cause identified Notices of Violation <br /> ( "NOV") C-89-003, NOV C-89-013, NOV C-89-017 , Cessation Order ("CO") C-89-019 , <br /> NOV C-90-001 , and NOV C-90-002 as constituting a pattern of violations <br /> justifying permit suspension or revocation. Although not specifically <br /> referenced, NOV C-89-033 was also included as one of the six violations and <br /> one Cessation Order which constituted the pattern of violations between <br /> February, 1989 and January, 1990 . <br /> 2. Mid-Continent responded to the Show Cause Order and maintains that <br /> the cited Notices of Violation were not caused by an unwarranted failure to <br /> comply, and do not constitute a pattern of violations justifying permit <br /> suspension or revocation . <br /> 3. On May 17 , 1990 , the Division issued NOV C-90-014 and on J my 26, <br /> 1990 , the Division issued NOV C-90-029 . Both NOV s were related to road <br /> drainage maintenance. Both violations were abated and assessed penalties were <br /> paid by Mid-Continent. On October 23, 1990 the Division issued NOV <br /> Nos . C-90-049, C-90-050 , C-90-051 and C-90-052 to Mid-Continent for several <br /> violations related to sediment control and road maintenance. The Division <br /> subsequently assessed a civil penalty in the amount of $4,000.00 against <br /> Mid-Continent for the four violations . The Division has not made a separate <br /> finding of a pattern of violations, nor made a determination that the above <br /> listed violations were caused by a willful or unwarranted failure to comply. <br /> B. Reclamation Bond <br /> A current appraisal of the real property or any additional real property <br /> which secures the performance bond has been requested by the Division in its <br /> recent mid-term review . Such appraisal , to be performed by a person agreed <br /> upon by the parties , is required before Mid-Continent may resume active mining <br /> operations. <br />