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Agreement
<br />1. The Parties will ask the Board to modify the August 2010 Order so that (i) the
<br />words on page nine (9), paragraph two (2), stating "at least 500 feet below the Steve Level, and
<br />sufficient to reestablish a hydraulic gradient away from Ralston Creek" be replaced with
<br />"150 feet below the Steve Level ", (ii) the words on page nine (9), paragraph two (2), stating "but
<br />no later than August 31, 2010" be replaced with "but no later than March 31, 2013" and (iii) the
<br />500 -Foot Dewatering Financial Assurance Requirement, which is a portion of page nine (9),
<br />paragraph three (3), be revised to read, "Through the Amendment 4 administrative process, the
<br />Operator will 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 quality
<br />protection, treatment and monitoring." Additional details of dewatering to 150 feet below the
<br />Steve Level, and specific details regarding the financial warranty requirement to dewater to
<br />150 feet below the Steve Level, will be addressed in the Amendment 4 administrative process.
<br />2. The Parties will ask the Board to vacate the December 2010 Order, including the
<br />civil penalties thereunder, resulting in Cotter no longer being considered in violation for failure
<br />to comply with the August 2010 Order covering the Schwartzwalder Mine site.
<br />3. The Parties will ask the Board to modify the August 2010 Order by deleting the
<br />final paragraph on page nine (9) thereof, which states as follows:
<br />The Operator is ordered to pay a civil penalty for 55 days of violation at $1,000 per day
<br />for a total civil penalty of $55,000 with all but $2,500 suspended if the Operator complies
<br />with this Order within the associated deadlines. The civil penalty shall be submitted
<br />within 30 days of this Order's signature date.
<br />The Parties will ask the Board to replace the deleted paragraph with the following sentence:
<br />"The Operator is ordered to pay a civil penalty for 55 days of violation at $1,000 per day for a
<br />total civil penalty of $55,000." The Parties and the Board agree to file a motion jointly with the
<br />Denver District Court, requesting the release of $55,000 plus any accumulated interest on
<br />$55,000 in the Registry to the Board, which shall satisfy the obligation to pay the civil penalty of
<br />$55,000, and $39,000 plus any accumulated interest on $39,000 from the Registry to Cotter.
<br />4. By entering into this Agreement, the Parties agree that nothing in this Agreement
<br />is to be considered, construed or interpreted as an admission with respect to the Findings of Fact
<br />and Conclusions of Law in the August 2010 Order, with respect to the Findings of Fact,
<br />Conclusions of Law, or the validity or invalidity of the December 2010 Order, or with respect to
<br />the Findings of Fact, Conclusions or Law, or decisions in the District Court Orders.
<br />5. This Agreement, upon signing by DRMS and Cotter, is contingent on the Board's
<br />modification of the August 2010 Order (as requested in paragraphs 1 and 3 above), the Board's
<br />vacating the December 2010 Order (as requested in paragraph 2 above), and the Board's
<br />agreement with the remaining terms of this Agreement (collectively, "Board Action "). The
<br />Board Action is contingent on dismissal of the Court of Appeals Case.
<br />6. The Parties agree that, upon the Board Action at a Board meeting, as described in
<br />Attachment 1, an agreement pursuant to Rule 42(b) of the Colorado Appellate Rules will be filed
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