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ATTACHMENT 1 <br />BEFORE THE MINED LAND RECLAMATION BOARD <br />STATE OF COLORADO <br />IN THE MATTER OF COTTER CORPORATION (N.S.L.), SCHWARTZWALDER MINE, <br />PERMIT No. M- 1977 -300 <br />AGREEMENT BETWEEN THE COLORADO DIVISION OF RECLAMATION, MINING <br />AND SAFETY AND COTTER CORPORATION (N.S.L.) <br />THIS AGREEMENT ( "Agreement ") is made and entered into by and between the <br />Colorado Division of Reclamation, Mining and Safety ( "DRMS ") and Cotter Corporation <br />(N.S.L.) ( "Cotter ") (jointly as "Parties "). Undersigned counsel, on behalf of their respective <br />Parties, submit this Agreement for consideration by the Mined Land Reclamation Board <br />( "Board "). In support of their joint stipulation, DRMS and Cotter state the following: <br />Recitals <br />A. On August 11, 2010, the Board issued Findings of Fact, Conclusions of Law, and <br />Order, In the Matter of Cotter Corporation's Possible Violations, Cease and Desist Order, <br />Corrective Actions, and Civil Penalties, File No. M- 1977 -300, relating to Notice of Violation <br />( "NOV ") No. MV- 2010 -018 ( "August 2010 Order "). The August 2010 Order required Cotter to: <br />Reinitiate mine dewatering and water discharge treatment sufficient to bring the <br />mine water table to a level at least 500 feet below the Steve Level, and sufficient <br />to reestablish a hydraulic gradient away from Ralston Creek. Implementation <br />must occur as soon as possible, but no later than August 31, 2010. <br />August 2010 Order at 9, If 2. This provision will be referred to as the "500 -Foot Dewatering <br />Requirement." The August 2010 Order further required Cotter to: <br />Provide financial warranty, pursuant to Hard Rock Rule 4.2.1(4), sufficient to <br />assure the protection of water resources, including costs to cover necessary water <br />quality protection, treatment and monitoring. <br />Id. at 9, if 3. The portion of this provision relating to the 500 -Foot Dewatering Requirement will <br />be referred to as the "500 -Foot Dewatering Financial Assurance Requirement." The August <br />2010 Order also required Cotter to pay $55,000 in penalties with all but $2,500 suspended if <br />Cotter complied with the August 2010 Order by the deadline. <br />B. On December 9, 2010, the Board issued Findings of Fact, Conclusions of Law, <br />and Order, In the Matter of Cotter Corporation's Possible Violation, Cease and Desist Order, <br />Corrective Actions and Civil Penalties for Failure to Comply with the Conditions of an Order, <br />Permit, or Regulation, File No. M- 1977 -300, relating to NOV No. MV- 2010 -030 ( "December <br />2010 Order "). The December 2010 Order stated that Cotter had failed to comply with the 500- <br />