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III IIIIIIIIIIIIIIII <br />999 <br />STATE OF COLORADO <br />DIVISION OF h11NERALS AND GEOLOGY <br />Gr•parlment of Nawrol Resour<e~ <br />7 11 1 Sherman 51., Roam ? I S <br />Denver, Colorado 80?UJ <br />Phone: (3031 866-3567 <br />FAA. 13031 83?~BI06 <br />October 5, 1999 <br />Mr. Steve Hinchman <br />Western Slope Environmental Resources Council <br />P.O. Box 1612 <br />Paonia, CO 81428 <br />RE: Bowie No. 2 Mine (C-96-083) <br />Permit Revision No. 2 <br />Dear Mr. Hinchman: <br />DIVISION of <br />lvtINERALS <br />GEOLOGY <br />RECLAMATION <br />MINING•SAFETY <br />6J1 Owens <br />Crnernor <br />Crec E. wale her <br />Execulire DirCUOr <br />`nichael0 Long <br />Division Dimaw <br />Here is some background on the compliance problems cited in Stipulation No. 7 <br />of the Division's proposed decision to approve Bowie Resources Ltd's (BRL) <br />Permit Revision No.2. which you requested. This is basically a summary of what <br />I know about the compliance problems, based on information from the OSM's <br />Applicant Violator System (AVS) and information provided by BRL. <br />1. The Kentucky citation for Star Fire Mining Company involves an unabated <br />violation and/or an unpaid civil penalty issued in 1998. The violation appears to <br />be a citation dealing with the permitting of a haul road which was also a public <br />county road. Following a hearing on the violation, the mine was closed. The <br />AVS indicates that this violation is pending a hearing. <br />2. The Kentucky forfeiture and cessation orders are the result of a bond <br />forfeiture at a mine permitted by Catavvba Industries. The forfeiture apparently <br />followed the issuance of two cessation orders in 1986. Catawba Industries is an <br />affiliate of Zeigler Coal Holding Company, which is owned by AEI Resources, <br />Inc., which is owned by AEI Resources Holding Company, which is owned by <br />Larry Addington and Addington Enterprises Inc. The State of Kentucky and <br />Zeigler Coal Holding Company entered into a settlement agreement concerning <br />the bond forfeiture several years ago. This compliance matter was identified by <br />the AVS because Zeigler Coal Holding Company is linked to AEI Resources Inc. <br />in the AVS and AEI Resources is one of the owners of Bowie Resources Ltd. I <br />do not know the details of the settlement agreement. <br />