SUMMARY OF MINUTES MINED LAND RECLAMATION BOARD MEETING

Transcription

1 SUMMARY OF MINUTES MINED LAND RECLAMATION BOARD MEETING The Board Meeting was called to order on Wednesday, February 9, 2011, at 1313 Sherman Street, Room 318, Denver, Colorado. The following members were present: Ira Paulin-Chairman, Catherine Kraeger-Rovey, Jim Amick, Barbara Green, and Robert Randall. The following people were present for the Division of Reclamation Mining and Safety: Loretta Pineda, Dave Berry, and Sitira Pope. John Roberts, Esq., of the Attorney General s Office was present representing the Board. Also present was Petina Falk, Registered Professional Reporter. 1. Approval of January 2011 Summary of Minutes: The January 2011 Summary of Minutes was approved as submitted. 2. Continuances and Withdrawals: The Continuances and Withdrawal were approved as submitted. 3. Consent Agenda A. Consent Agenda M S FOREST, LLC File No. M P.O. Box 521 Aguilar, CO Las Animas County, Sec. 28, T31S, R68W, 6 th P.M., 9.99 acres, 110c sand gravel and borrow; MSF/Feister pit #1. Consideration of a possible violation, Cease and Desist Order, corrective actions and civil penalties for failure to protect areas outside of the affected land from slides or damages occurring during the mining operation. (Jared Ebert) B. Consent Agenda FEBBRARO CONSTRUCTION COMPANY File No. M Santa Fe Trail Trinidad, CO Las Animas County, Sec. 7, T32S, R61W, 6 th P.M., 9.9 acres, 110c gravel; Broyles pit. Consideration of a possible violation, Cease and Desist Order, corrective actions and civil penalties for failure to protect areas outside of the affected land from slides or damages occurring during the mining operation. (Jared Ebert)

2 MLRB Summary of Minutes February 9, 2011 Page 2 C. Consent Agenda CARRIZO STONE, LLC File No. M c/o Stephanie and Ray Sikes 1425 County Road Q Pritchett, CO Baca County, Sec. 9 SW ¼ of SE ¼, T33S, R50W, 6 th P.M., 9.9 acres, sandstone; Carrizo Stone North site. Consideration of the Operator s request for an extension of the corrective action due date to have all the materials for the required 112c conversion application in an approval form. (Jared Ebert) D. Consent Agenda CORKLE CONSTRUCTION File No. M c/o Harry E. Corkle P.O. Box 306 Walden, CO EDO Report: Jackson County, Sec. 36 SW ¼ of SW ¼, T8N, R78W, 6 th P.M., 9.9 acres, 110c, sand and gravel; Corkle pit. Board approval for the modification of corrective actions pertaining to MV against Corkle Construction, File No. M (Peter Hays) The Consent agenda was approved as submitted. The Board noted the Division now has a signed agreement from Corkle Construction for Item D. a) Legislation: Mr. Randall said the Department has no bills before this session related to the Division or the Mined Land Reclamation Board. b) Budget: Mr. Randall said in the last 10 years the general fund income has been flat but mandated spending on K-12 and Medicaid spending has risen $1.3 billion with population increasing 17 percent and general inflation at 25 percent. He said the governor plans to address one-third of the current shortfall in fiscal year Director Report: a) Budget: Ms. Pineda said the Division is still operating the coal program under a continuing resolution. She anticipates a determination on the continuing resolution for the current fiscal year in early March. b) Coal Rule-making: Ms. Pineda said another stakeholders meeting was held in the coal rulemaking process, and the new rules generated as a result of that process will be posted shortly.

3 MLRB Summary of Minutes February 9, 2011 Page 3 Presentation by Michael Cunningham: Board Action/Formal Public Hearing 5. Board Action/Formal Public Hearing CAT CONSTRUCTION File No. M e. 69 th Place Denver, CO Weld County, Sec. 31 NW ¼, T1N, R66W, 6 th P.M., 33.3 acres, 112c sand and gravel; Brighton pit. Petition for reconsideration of the Board s Decision issued December 17, 2010, against Cat Construction, Inc., File No. M ; and a Formal Public Hearing for reconsideration of the Board Decision, if granted. Also present: Dennis Clanahan, Tony Waldron By unanimous vote, the Board granted the parties an opportunity to present oral arguments. By unanimous vote, the Board denied the petition for reconsideration of the Board decision. (Board Member Barbara Green was not present for this item.) Presentation by Steve Shuey: 6. Formal Public Hearing COLORADO GOLDFIELDS, INC. File No. M c/o C. Stephen Guyer Chief Financial Officer 7986 South Datura Circle West Littleton, CO San Juan County, Sec. 1, T41N, R7W, 10 th P.M., 96 acres, 112d-2, milling only, precious metals; Pride of the Mill site. Board consideration of a stipulated agreement to modify/amend the Board ordered deadline for submittal of financial warranty increase. Also present: Mike Hegarty, Esq., Jeff Fugate, Esq. By unanimous vote, the Board adopted the stipulated agreement to modify/amend the Board order deadline for submittal of financial warranty increase.

4 MLRB Summary of Minutes February 9, 2011 Page 4 Enforcement Hearings Presentation by Kate Pickford and Steve Shuey: 7. Enforcement Hearing MCCARTY EXCAVATING File No. M c/o Mr. Justin McCarty 1276 CR 500 Vallecito, CO La Plata County, Sec. 17, T37N, R6W, 10 th P.M., 1 acre, Unpermitted construction materials(blasted and crushed granite); McCarty Homesite. Consideration of a possible violation, Cease and Desist Order, corrective actions and civil penalties for failure to first, obtain from the board or office a reclamation permit before engaging in a new operation. Also present: Jim Olson, Esq., Justin McCarty, Cheryl Linden, Esq., Jeff Fugate, Esq. By unanimous vote, the Board found the operator in violation for failure to obtain a reclamation permit prior to engaging in a new mining operation. By unanimous vote, the Board issued a cease-and-desist order prohibiting any further activities at the site, with the exception of Division-authorized environmental maintenance activities, until all areas affected by the operation are included in a reclamation permit. By unanimous vote, the Board ordered the operator to (1) provide all materials necessary to allow the Board or Division issuance of a reclamation permit that includes and addresses all areas affected by this construction materials extraction operation, including the required financial warranty as calculated by the Division during the permitting process, within 180 days of the mailing date of the Board order, and (2) submit an interim reclamation bond in the amount of $36,353 (as calculated by staff for the reclamation of the current mining disturbance) in a form acceptable to the Division within 30 days of the By unanimous vote, the Board assessed a civil penalty for 68 days of violation at $1, per day plus $2,039.04, based on 36 hours of staff time at $56.64 per hour, for a total civil penalty of $70, with all but $5, of the civil penalty suspended if the operator complies with the corrective actions. The $5, is due within 30 days of the mailing date of the Board order. Presentation by Travis Marshall: 8. Enforcement Hearing ALL AMERICAN RESOURCES, LLC File No. M c/o Kent Cotton Hwy 92 Hotchkiss, CO Delta County, Sec. 7, T15S, R94W, acres, 111 sand and gravel, D-22 East pit. Consideration of a possible violation, Cease and Desist Order, corrective actions and civil penalties for failure to protect areas outside of the affected land from slides or damages occurring during the mining operation.

5 MLRB Summary of Minutes February 9, 2011 Page 5 Also present: Steve Shuey, Jeff Fugate, Esq., Cheryl Linden, Esq. By unanimous vote, the Board found the operator in violation for failure to protect areas outside the affected lands from slides or damage occurring during the mining operation and reclamation. By unanimous vote, the Board issued a cease-and-desist order prohibiting any further activities at the site, with the exception of reclamation and environmental maintenance within the approved permit area, until all areas affected by the operation are included in a reclamation permit that has been issued by DRMS. By unanimous vote, the Board ordered the operator to submit a 112 construction materials permit application that (1) includes and addresses all unpermitted on-site mining operations that occurred after the December 11, 2009, CDOT contract expiration date and (2) includes and addresses all areas affected by the construction materials operation, within 60 days of the By unanimous vote, the Board ordered the operator to submit an interim reclamation bond in the amount of $3, (as calculated by staff for reclamation of the 1-acre off-site disturbance) in a form acceptable to the Division within 30 days of the mailing date of the Board order. By unanimous vote, the Board assessed a civil penalty of $ for 63 days of violation at $ per day per violation (includes No. 9 below) for a total civil penalty of $12, with all but $5, of the civil penalty suspended if the operator complies with the corrective actions. The $5, is due within 30 days of the Presentation by Travis Marshall: 9. Enforcement Hearing ALL AMERICAN RESOURCES, LLC File No. M c/o Kent Cotton Hwy 92 Hotchkiss, CO Delta County, Sec. 7, T15S, R94W, acres,111 sand and gravel, D-22 East pit. Consideration of a possible violation, Cease and Desist Order, corrective actions and civil penalties for extraction of construction materials from a special permit area not solely for use on highway, road, utility, or similar construction purposes under a government contract and after the contractual reason for such mining operations has been completed. Also present: Steve Shuey, Jeff Fugate, Esq., Cheryl Linden, Esq. By unanimous vote, the Board found the operator in violation for extraction of construction materials from a special permit area not solely for use on highway, road, utility, or similar construction purposes under a government contract and after the contractual reason for such mining operations has been completed.

6 MLRB Summary of Minutes February 9, 2011 Page 6 (The cease-and-desist order, corrective actions, and civil penalty for this item were combined with Item 8.) Presentation by Russ Means: 10. Enforcement Hearing WESTERN GRAVEL, INC. File No. M N. Townsend Ave. Montrose, CO Montrose County, Sec. 22, T50N, R10W, 10 th P.M., 9.9 acres, 110c sand and gravel; Olathe pit. Consideration of a possible violation, Cease and Desist Order, corrective actions and civil penalties for failure to maintain a financial warranty in good standing for the entire life of the permit, and for failure to comply with the performance warranty as required and finding the financial warranty subject to forfeiture. By unanimous vote, the Board found the operator in violation for failure to maintain a financial warranty in good standing for the life of the permit. Further, the Board issued a cease-anddesist order prohibiting any further activities at the site. The Board revoked the permit and found the financial warranties are subject to forfeiture due to the operator s impaired financial situation, and directed the Division to schedule a March hearing for forfeiture of the financial warranty. By unanimous vote, the Board assessed a civil penalty for 38 days of violation at $ per day for a total civil penalty of $2,800.00, which is due within 30 days of the mailing date of the Board order. Presentation by Eric Scott: 11. Enforcement Hearing STONER AND COMPANY DEVELOPMENT File No. M South College Ave Ft Collins, CO Larimer County, Sec. 3, T6N, R68W, 6 th P.M., 102 acres, 112c sand and gravel; Weitzel pit. Consideration of a possible violation, Cease and Desist Order, corrective actions and civil penalties for failure to comply with the signed Board Order. Also present: Jay Stoner By unanimous vote, the Board found the operator in violation for failure to comply with the conditions of an order, permit, or regulation. Further, the Board found the financial warranty is subject to forfeiture for failure to complete corrective actions although ample time to do so has elapsed and/or financial warrantor no longer has the financial ability to carry out any obligations required under C.R.S. section (a) and/or (d). The Board issued a ceaseand-desist order prohibiting any further activities at the site, with the exception of environmental maintenance activities, until violations have been resolved to the satisfaction of

7 MLRB Summary of Minutes February 9, 2011 Page 7 the Division and the Board. The Board required the operator to remove the off-site fill and finish reclamation of the site according to the current approved reclamation plan within six months. By unanimous vote, the Board assessed a civil penalty for 365 days of violation at $ per day for a total civil penalty of $36, with all but $3, of the civil penalty suspended if the operator complies with the corrective actions. The $3, is due within 30 days of the Presentation by Loretta Pineda: 12. Discussion Item Uranium Operations: DMO status update. Discussion Item Ms. Pineda updated the Board on the Division s progress in bringing all mines into compliance with the new rules and HB1161. She indicated the Division is working with smaller mines and CMA in achieving compliance. 13. Public Comment (At this time there were no public comments.) Presentation by Tim Cazier: 14. Executive Session Executive Session At 1:53 p.m., a motion was made, seconded and carried unanimously to enter into executive session for the purpose of discussing with counsel disputes that are the subject of pending or imminent court action, discussing specific claims or grievances, and receiving legal advice on specific legal questions, pursuant to section (3)(a)(II) and (III), C.R.S., including prospecting notices, Powertech v. MLRB and Mike King, 2010 CV 8615 and Cotter v. MLRB and DRMS, 2010 CV At least two-thirds of the entire Board membership voted in favor of the motion. At 3:43 p.m. the Board s discussion in executive session concluded and the Board returned to open session.

8 MLRB Summary of Minutes February 9, 2011 Page Prospecting Notices A. File No. P Actions Following Executive Session By unanimous vote, the Board found the prospector in violation for failure to pay annual fees and failure to submit annual reports. Further, the Board reaffirmed the existing cease-and-desist order for all areas within the site. The Board ordered the prospector to submit annual fees for 2009 and 2010 totaling $ and a prospect status report within 30 days of the The Board assessed a civil penalty for 35 days of violation at $ per day for a total civil penalty of $3, with all but $ of the civil penalty suspended if the operator complies with the corrective actions. The $ is due within 30 days of the B. File No. P By unanimous vote, the Board found the prospector in violation for failure to pay annual fees and failure to submit annual reports. Further, the Board issued a cease-anddesist order for all areas within the site. The Board ordered the prospector s estate to submit annual fees for 2008, 2009, and 2010 totaling $ and a prospect status report within 30 days of the The Board assessed a civil penalty for 37 days of violation at $ per day for a total civil penalty of $3, with all but $ of the civil penalty suspended if the operator complies with the corrective actions. The $ is due within 30 days of the C. File No. P By unanimous vote, the Board found the prospectors in violation for failure to pay annual fees and failure to submit annual reports. Further, the Board issued a cease-anddesist order for all areas within the site. The Board ordered the prospectors to submit annual fees for 2008, 2009, and 2010 totaling $ and a prospect status report within 30 days of the The Board assessed a civil penalty for 55 days of violation at $ per day for a total civil penalty of $5, with all but $ of the civil penalty suspended if the operator complies with the corrective actions. The $ is due within 30 days of the

9 MLRB Summary of Minutes February 9, 2011 Page 9 Approved by the Board this March 2011 Ira Paulin, Chair Formatted: Space Before: 24 pt, Don't adjust space between Latin and Asian text, Don't adjust space between Asian text and numbers Attestation: Formatted: Space Before: 24 pt Pursuant to section (2)(d.5)(I)(B), C.R.S., as Board Chair, I attest that the executive sessions of the Mined Land Reclamation Board meeting held on February 9, 2011 were confined to the topics for discussion pursuant to section (3)(a)(II) and (III), C.R.S. Ira Paulin, Chair Formatted: Space Before: 24 pt, Don't adjust space between Latin and Asian text, Don't adjust space between Asian text and numbers Formatted: Space Before: 24 pt Pursuant to section (2)(d.5)(I)(B), C.R.S., as counsel for the Board, I attest that it is my opinion that all matters discussed during the executive session(s) of the Mined Land Reclamation Board meeting held on February 9, 2011, constituted privileged attorney-client communications; the contents of privileged attorney-client discussions are not reflected within these minutes. John J. Roberts, Assistant Attorney General Formatted: Space Before: 24 pt, Don't adjust space between Latin and Asian text, Don't adjust space between Asian text and numbers