2013-08-30_ENFORCEMENT - C1992080

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SETTLEMENT AGREEMENT JUSTIFICATION Oakridge Energy, Inc. Carbon Junction Mine; C- 1992 -080 Notice of Violation No. CV- 2013 -005 Bruce Stover, Conference Officer Notice of Violation Number CV- 2013 -005 was issued on 23- May -2013 to Oakridge Energy, Inc., the permittee (OEI). The violation was issued for Failure to Minimize Damage to the Prevailing Hydrologic Balance within the Permit Area: Failure to construct and maintain appropriate sediment control measures to minimize erosion; failure to construct the Carbon Junction Permanent Diversion as designed; failure to reestablish the Carbon Junction Channel to functionally blend with the undisturbed drainage above and below the area to be reclaimed; failure to minimize erosion and to regrade topsoil and revegetate the land affected by the temporary diversion. These deficiencies were pointed out to OEI personnel in a 30 -July -2012 inspection, and issues needing abatement on the ground and for inclusion in a minor revision were identified to OEI in the Division's letter of 29- August -2012. As identified in an inspection conducted on 30 -April -2013, only part of the on- ground abatement work was completed, and as of this date, none of the other issues were addressed or abated, and OEI has failed to submit the requested permit revisions. On 27- August -2013, an Assessment Conference meeting for CV- 2013 -005 was held at the Division of Reclamation, Mining and Safety Offices located at 691 CR 233, Suite A- 2, in Durango, Colorado. OEI failed to appear at the conference as previously arranged. The Assessment conference date was coordinated via e -mail with OEI, and OEI had requested the meeting be held in Durango. OEI personnel were eventually located in Texas via telephone. It was decided by all to hold the Assessment Conference via telephone. In attendance were, in addition to the Conference Officer, Ms. Marcia Talvitie and Ms. Sandy Brown representing the Division of Reclamation, Mining and Safety, and via telephone, Ms. Arbie Marie Price, representing Oakridge Energy Inc. Ms. Price apologized for overlooking the scheduled Assessment Conference. Marcia Talvitie and Sandy Brown provided background and detailed the nature of the violations including lack of follow -up measures that have been implemented to date. Ms. Talvitie read a letter to OEI dated 29- August -2012 describing items that needed to be incorporated into a minor revision to the permit. These items included the Carbon Junction Canyon erosion issues for which CV 2013 -005 was issued in May 2013, and have yet to be abated.