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COMPLIANCE ORDER ON CONSENT <br />In the Matter of Western Fuels Colorado, LLC <br />New Horizon Mine <br />Permit No. 88M0234F <br />Horizon North Mine ("NHN "), for which Mining Permit — Coal, Permit No. C- 2010 -089 has been issued <br />by the Colorado Department of Natural Resources Division of Reclamation Mining and Safety. <br />6. On September 30, 2010, WFC filed an application with the Division for a permit to address <br />emissions from operations at NHN; this application was acknowledged and assigned Construction Permit <br />Number 10M02275F ("Pending NHN Permit Application ") by the Division on October 19, 2010. On <br />August 12, 2011, WFC's consultant, McVehil- Monnett Associates, Inc. filed a modeling report with the <br />Division to support issuance of a permit necessary for the NHN operations. <br />7. WFC sought to expedite the NHN permitting process by utilizing a third -party contractor to <br />perform modeling functions on behalf of the Division. The third -party contractor and the Division <br />reviewed the modeling for the pending NHN Permit Application and provided comments to WFC on June <br />13, 2012. On March 18, 2013, WFC submitted a Revised Air Quality Modeling Report in response to the <br />Division's comments. The Pending NHN Permit Application is currently being processed by the Division <br />and a "minor source permit" for the NHN has not yet been issued to WFC. <br />8. Previously, on August 14, 2012, the Parties entered into a Compliance Order on Consent <br />( "Phase One COC ") to allow WFC to engage in some initial site - preparation work at the NHN site. The <br />site preparation activities, referred to as ( "Phase One Work "), were comprised of the following: <br />a. Removal of 220,000 cubic yards of topsoil from approximately 75 acres, and <br />placement of the same into stockpiles. <br />b. Construction of Pond NHN -001 to control surface water runoff. <br />c. Construction of perimeter ditches to control surface water runoff. <br />All of the Phase One Work has been completed. For ease of reference, a map has been attached <br />as Exhibit I which illustrates the area in which the Phase One Work took place. <br />9. WFC states it roust engage in NHN site - preparation activities in addition to the completed <br />Phase One Work activities to include surface and pit development. WFC further states that the additional <br />surface and pit development must be completed as soon as possible in order to make up time on the <br />schedule for the production of coal from NHN, the coal supply on which Nucla Station is dependent. <br />WFC states that such site - preparation activities are necessary to attempt to prevent disruption of the coal <br />supply to Nucla Station. WFC states that the surface and pit development activities for the NHN site <br />( "Phase Two Work ") entail the following: <br />a. Additional top soil removal and placement in a stockpile, <br />b. Earthen material excavation and placement in a stockpile, <br />c. Construction of temporary haulage ways and earthen safety berms. <br />d. Associated work such as fencing the NHN site, signage, and relocation of light <br />duty support equipment and heavy equipment will occur as part of this Phase <br />Two Work. For ease of reference, a list of the types of heavy equipment that <br />-2- <br />MR-041 <br />nleof <br />/� -�9oy X003 <br />