Content-Type: text/html 91-372r.v6.html

CADDNAR


[CITE: Department of Natural Resources v. Fossil Fuels, 6 CADDNAR 134 (1993)]

[VOLUME 6, PAGE 134]

Cause #: 91-372R
Caption: Department of Natural Resources v. Fossil Fuels
Administrative Law Judge: Teeguarden
Attorneys: Biggs; Clement
Date August 23, 1993

ORDER

Surface coal mine permit P-00029 issued to Allied Minerals, Inc., is hereby revoked. Surface coal mine permit S-00219T issued to Fossil Fuels Resources Inc., is hereby revoked. Surface Coal mine permits S-00052, 81-106, and 82-67 issued to Fossil Fuels Mining , Inc., are hereby revoked. Surface coal mine permits S-00053, 80-117, and 81-122 issued to Fossil Fuels Mining, Inc. are hereby revoked. No action is taken by the Natural Resources Commission at this time on requests for bond forfeitures pending further proceedings under IC 4-21.5

FINDINGS OF FACT

1. The Indiana Department of Natural Resources ("DNR") and the Natural Resources Commission ("NRC") are agencies within the meaning of IC 4-21.5.

2. The DNR is responsible for the regulation of surface mining operations in Indiana pursuant to IC 13-4.1.

3. The NRC is the ultimate authority within the meaning of IC 4-21.5 with respect to surface mining permit revocations.

4. At all times relevant to these proceedings, Allied Minerals, Inc. held permit P-00029 for the Warrior Plant in Knox County, Indiana.

5. At all times relevant to these proceedings, Fossil Fuels Resources, Inc. held permit S-00219T for the Warrior Mine in Knox County.

6. At all times relevant to these proceedings, Fossil Fuels Mining, Inc. held permits S-00052, 81-106, and 82-67 for the Castle Knoll Mine and permit numbers S-00053, 80-117, and 81122 for the Castle Hill Mine in Greene County, Indiana.

7. On October 18, 1991, complaints for Orders to Show Cause and Requests for Bond Forfeitures filed by the DNR and timely responses filed by the mines dealing with all the above listed permits ("permits") were filed with the NRC, which began the hearings process under IC 4-21.3.

8. On December 16, 1992, the DNR and the Chief Executive Officer ("CEO") of the mining operations entered into an agreed order.

9. Relevant portions of the agreed order are:

(1) Rooksby [(CEO)] shall implement the plan . . . pursuant to its terms.
(2) These show cause proceedings shall be and hereby are stayed . . . while Rooksby is given the opportunity to implement the plan.
(3) In the event Rooksby successfully satisfies the terms of the plan, the Department agrees to stipulate to a dismissal of these show cause proceedings . . . .
(4) In the event Rooksby fails to satisfy the terms of the plan, including failure to adhere to all time deadlines and amounts set for the payment of civil penalties, Rooksby agrees to, without opposition and without right of administrative or judicial review . . . automatic revocation of the permits and the forfeiture of bonds.
(5) [This section sets forth an extensive notification of noncompliance procedure and gives the CEO ten days to cure the noncompliance.]

10. On July 6, 1993, the CEO received a written description of noncompliance ("letter") issued by the DNR. A copy is attached to these findings and labeled Exhibit A.

11. The letter details breaches of the agreed order and plan and gives the CEO ten days to take action.

12. As of August 11, 1993, no response has been received nor any work done to bring the mines into compliance with the agreed order.

13. The CEO has breached the agreed order, the DNR has sent the appropriate notice, and there has been no response to the notice.

14. Accordingly, pursuant to paragraph 4 of the agreed order, the permits in question can and should be revoked.

15. Neither of the sureties was a signatory to the agreed order, thus neither has waived its right to a hearing pursuant to IC 4-21.5 before an order of forfeiture is issued. [FOOTNOTE 1]

16. Because of paragraph 15, the NRC cannot issue an order of bond forfeiture at this time.

FOOTNOTE

1. At the August 11, 1993, oral argument, it was apparent that both sureties are aware of their reclamation responsibilities and will begin serious

[VOLUME 6, PAGE 135]

[sic] negotions with the DNR as soon as the permits are revoked and the reclamation responsibilities legally shifted to them against the sureties.