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C'OMPLIANC'E ORDER ON CONSENT <br />In the Matter of Western Fuels Colorado, A Limited Liability Company <br />Nevv horizon Mine <br />Permit No. 88M0234F <br />5. New Horizon Mine, a coal mine, is the sole supplier of coal to Nucla Station. Its <br />coal reserves are nearing exhaustion and it plans to expand its operations to an adjacent site <br />known as New Horizon North Mine (-NIIN-), for which Mining Permit — Coal, Permit No. <br />C- 2010 -089 has been issued by the Colorado Department of Natural Resources Division of <br />Reclamation Mining and Safety. <br />6. On September 30, 2010, WFC filed an application with the Division for a permit <br />to address emissions from operations at the NHN. The Division assigned the application <br />Construction Permit Number 10M02275F ( "Pending NHN Permit Application ") on October 19, <br />2010. On August 12, 2011, WFC's consultant, McVehil- Monnett Associates, Inc. filed a <br />modeling report with the Division to support issuance of a permit necessary for the NIIN <br />operations. <br />7. WFC sought to expedite the NIIN permitting process by utilizing a third party <br />contractor to perform modeling functions on behalf of the Division. The third party contractor <br />and the Division reviewed the modeling for the Pending NIIN Permit Application and provided <br />comments to WFC on June 13, 2011 The Pending NHN Permit Application is currently being <br />processed by the Division and a permit for the NHN has not yet been issued to WFC. <br />8. WFC states it must begin NHN site preparation activities as soon as possible in <br />order to stay on schedule for the opening of and production of coal from NIIN in attempt to <br />prevent disruption of' the coal supply to Nucla Station. WFC states these site preparation <br />activities for the NHN site ( "Phase One Work ") entail: top soil removal and placement in a <br />stockpile, as well as construction of Pond NHN -001 and perimeter ditches to control surface <br />water runoff. WFC estimates the size of the Phase One Work area as approximately 75 acres, <br />involving the movement of 220,000 cubic yards of topsoil. WFC represents this top soil removal <br />and stockpiling activity is a basic earth moving exercise similar to road construction and <br />subdivision development. WFC states top soil removal facilitates infrastructure development <br />and construction of improvements needed for the eventual mining activity. Associated work <br />such as fencing the NIIN site, signage, and relocation of heavy equipment such as large haul <br />trucks, shovel and loaders will occur as part of the Phase One Work. The Phase One Work only <br />includes the specific activities addressed herein and does not include further preparation of the <br />site including, but not limited to blasting, construction and /or relocation of other equipment. <br />9. Based upon a review of information including records related to the Facility and <br />information provided by WFC, the Division has determined: <br />a Under Regulation No. 3, Part B, § II.A.1, no person shall commence <br />construction of any stationary source or modification of a stationary <br />source without first obtaining or having a valid construction permit from <br />the Division. <br />b Although the permit for the Pending NHN Permit Application has not yet <br />been issued by the Division to WFC, WFC may conduct its NIIN Phase <br />-2- <br />