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Foot Dewatering Requirement and the 500 -Foot Dewatering Financial Assurance Requirement, <br />and failed to pay the $55,000 penalty. The December 2010 Order issued a cease and desist <br />order, made due the suspended portion of the civil penalty previously assessed of $55,000, and <br />assessed an additional penalty of $39,000. <br />C. Cotter filed two cases in Denver District Court against the Board and DRMS, <br />contesting the 500 -Foot Dewatering Requirement, the 500 -Foot Dewatering Financial Assurance <br />Requirement, and the penalties in the August 2010 Order (Case Number 2010 CV 7609) and all <br />aspects of the December 2010 Order (Case Number 2011 CV 170). Pursuant to a Denver <br />District Court Order, dated September 30, 2011, and a Supplemental Order, dated April 9, 2012, <br />the Denver District Court upheld the August 2010 Order and the December 2010 Order ("District <br />Court Orders "). Cotter timely appealed the District Court Orders to the Colorado Court of <br />Appeals, which is pending as Case Number 2012 CA 763 ( "Court of Appeals Case "). <br />D. On February 3, 2011, Cotter filed an Unopposed Motion to Allow Deposit of <br />Funds With the Registry of the Court, allowing the deposit of $94,000 (the $55,000 and the <br />$39,000 penalties) established in the December 2010 Order in the Denver District Court registry <br />( "Registry "). The Motion was granted on February 7, 2011, and Cotter deposited $94,000 in the <br />Registry on February 11, 2011. <br />E. The Parties desire to bring about an amicable resolution of the matters set forth <br />above, as well as all claims or alleged claims that could have been raised or asserted between the <br />Parties in connection with the matters set forth above, and to resolve the same without resorting <br />to further legal action and expense. <br />F. On May 1, 2012, Cotter filed an Application, Amendment 4, Mine Permit M- <br />1977 -300, Schwartzwalder Mine, that includes an Environmental Protection Plan for the <br />Schwartzwalder Mine site ( "Amendment 4 "), which is under review by DRMS. <br />G. DRMS has new information to support a modification of the 500 -Foot <br />Dewatering Requirement to a requirement that dewatering be sufficient to bring the mine water <br />table to a level 150 feet below the Steve Level. This new information includes, but is not <br />limited to, technical investigations and additional monitoring data that have been collected at the <br />Schwartzwalder Mine site. The Parties believe that dewatering to the level of 150 feet below the <br />Steve Level will (i) reestablish a hydraulic gradient away from Ralston Creek in the permit area, <br />and (ii) reduce the exposure of wall rock to oxygen in order to minimize uranium oxidation in <br />the workings. <br />H. In light of the foregoing, the Parties believe that the 500 -Foot Dewatering <br />Requirement should be changed to a requirement that dewatering be sufficient to bring the mine <br />water table to a level 150 feet below the Steve Level. <br />NOW THEREFORE, for and in consideration of the mutual promises and undertakings <br />set forth herein, the Parties agree as follows: <br />2 <br />