DAQ-2024-011770

Department of
Environmental Quality
Kimberly D. Shelley
Execulive Direclor
DIVISION OF AIR QUALITY
Bryce C. Bird
DirectorSPENCER J. COX
Govenror
DEIDRE HENDERSON
Lieutenant Governor
November 74,2024 DAQC-1r2s-24
Site ID: 11462 (Bl)
Sent Via Certified Mail No. 70190700000208345347
Alysen Tarrant
Lisbon Valley Mining Company, LLC
755 North Main Street, Suite B
P.O. Box 400
Moab, utah84532
Dear Ms. Tarrant:
Re: Early Settlement Agreement - Lisbon Valley Mining Company, LLC, San Juan County
On August 22,2024, the Utah Division of Air Quality (DAQ) issued a Compliance Advisory
(DAQC-859-24) to Lisbon Valley Mining Company, LLC as a result of an inspection performed
on July 10,2024. Lisbon Valley Mining Company, LLC responded to the Compliance Advisory
on August 29,2024, and a pre-NOI meeting was held on September 18,2024. Based on the
findings of the inspection and response to the Compliance Advisory, the DAQ determined that
Lisbon Valley Mining Company, LLC was in violation of:
1. Utah Administrative Code (UAC) R307-401-5 (NOI), and condition I.3 of AO
DAQE-ANr14620015-21:
An NOI was not submitted and an Approval Order (AO) was not issued prior to installing
and operating a Godwin 130 kW diesel generator engine, two Heatec boilers, and a rental
crusher.
2. Conditions II.B.1.a and II.B.2.d of AO DAQE-AN114620015-21:
Exceeding acid tonnage use, number of blasts, and ANFO tonnage use in a given
l2-month period.
195 North 1950 West. Salt Lake City, UT
Mailing Address: P.O. Box 144820. Salt Lake City, UT 841144820
Telephone (80 I ) 5364000 . Fax (80 I ) 536 4099 . T.D.D. (80 I ) 903-3978
ww.deq.utah.gov
Printed on [007o recycled paper
DAQC-Ir2s-24
Page2
Section l9-2-l l5 of the Utah Code provides that violations of the Utah Air Conservation Act (the
Act) and/or any order issued thereunder may be subject to a civil penalty of up to S10,000 per day
for each violation. Based upon our civil penalty policy, we calculated a preliminary civil penalty
for the above listed violation(s) of $3,534.
The monetary amount of the DAQ settlement offer specified below is derived from a
pre-established schedule of penalties, which takes into account, among other factors, the
magnitude and severity of the violation, economic benefit, cooperation of the source as well as the
prior history of violations. See the attached penalty worksheet for details.
All parties we deal with, whether private, commercial, or governmental are treated similarly in the
settlement process. Early Settlement Agreements are based on the evaluation of the same factors
and criteria in all cases. The DAQ acknowledges that the violations on July 10,2024, are being
addressed by Lisbon Valley Mining Company, LLC by working on a submittal of an NOI.
If you are interested in settling this violation, we are authorized to offer settlement in accordance
with the DAQ Penalty Policy as follows:
l. Lisbon Valley Mining Company, LLC agrees to pay a reduced civil penalty in the sum of
$2,827 . Payment of a civil penalty precludes further civil enforcement for the above
described violation against the named source. Lisbon Valley Mining Company, LLC
agrees to pay $2,827 of the stipulated penalty within twenty (20) business days from the
date you receive this Early Settlement Agreement.
2. The DAQ retains its authority to take any enforcement actions based on any and all
violations not specifically described above. lf a violation is a failure to submit a Notice of
Intent to the Director and receive an Approval Order under Utah Administrative Code
R307-401-5, the DAQ retains its authority to take subsequent enforcement action if during
the next inspection the DAQ finds the source is still not in compliance with R307-401-5.
3. In the event any further violations of the Act, the Utah Air Quality Rules, the source's AO,
or the Director's Orders occur, the DAQ may consider the violation described above in
assessing a penalty for the subsequent violations, in accordance with the provisions of
Utah Administrative Code R307- I 30.
4. Entering into this Early Settlement Agreement shall not constitLrte an admission of
violation of the Act, the Utah Air Quality Rules, or the source's AO nor shall it be inferred
to be such an admission in any administrative or judicial proceeding. The described
violation will constitute part of the company compliance history for any purpose for which
such history is relevant to the DAQ.
This Early Settlement Agreement constitutes an offer of settlement and is not a demand for
payment. The Early Settlement Agreement reflects a reduced penalty for early settlement of this
matter.
DAQC-1t2s-24
Page 3
If the above terms are acceptable to you, please sign and return this Early Settlement Agreement
and a check in the sum of $2,827. Submit the signed Early Settlement Agreement and check made
payable to the DAQ at the letterhead address within twenty (20) business days of receipt of this
Early Settlement Agreement. Electronic payments are also available on our website at:
https ://deq.utah. gov/generalipayment-portal.
You may write or call to request a settlement conference with the DAQ representative listed
below. A conference must be scheduled within twenty (20) business days of your receipt of this
Early Settlement Agreement. If we do not receive a signed copy of this Early Settlement
Agreement and payment or other correspondence from you within twenty (20) business days of
your receipt, we will assume that you are not interested in resolving this matter as outlined above.
If you need an Approval Order, this Early Settlement Agreement does not relieve you of that
responsibility and does not change that requirement in order to return to compliance with the
DAQ. You must submit a Notice of Intent for a required Approval Order as soon as possible.
Your source will be re-inspected in a reasonable time to confirm you have fully returned to
operating in compliance. Failure to obtain a required Approval Order will subject you to
additional penalties and a new compliance action by the DAQ.
This Early Settlement Agreement is intended to quickly resolve the non-compliance issues listed
above and requires the immediate attention of your company. Failure to resolve this matter as
outlined above may result in this offer being revoked and/or having this matter referred to a
formal enforcement process, including filing a judicial case to collect penalties (up to $10,000 per
day for each violation) and compel compliance in the state district court.
If you have any additional questions regarding this matter, please contact Chad Gilgen at
385-306-6500 or by email at [e-mail].
Sincerely,
4-.d
Bryce C. Bird
Director
BCB:JJ:rh
cc: Southeast Utah Health Department
DAQC-1t2s-24
Page 4
Acceptance of Early Settlement Agreement
I have read the above Early Settlement Agreement and I agree to the terms and conditions thereof.
Company Name: Lisbon Valley Mining Company, LLC
Name:
Title:
Signature Date Telephone Number
DAQC-r t25-24
Page 5
R307-130-1.
Scope.
This policy provides guidance to the director in negotiating with air pollution sources penalties for consent
agreements to resolve non-compliance situations. It is designed to be used to determine a reasonable and
appropriate penalty for the violations based on the nature and extent ofthe violations, consideration ofthe
economic benefit to the sources of non-compliance, and adjustments for specific circumstances.
R307-130-2.
Categories.
Violations are grouped in four general categories based on the potential for harm and the nature and extent
ofthe violations. Penalty ranges for each category are listed.
Utah Division of Air Quality General Administrative Penalty Worksheet
Lisbon Valley
Mining Company,
LLC
July 10,2024
Citation Description of the
Violation Days Category Range Daily
Penaltv
Accumulated
Penaltv
DAQE-
ANI14620015-21
condition I.2, II.B. 1.a,
and tI.B.2.d
Exceeding acid
tonnage use,
number of blasts,
and ANFO
tonnase.
J C Up to
$2,000 ss89 $1,767
DAQE-
ANt 14620015-21
condition I.3 and Utah
Administrative Code
(uAC) R307401-s
Unapproved
equipment on site
(130 kW Godwin
diesel generator, a
rental crusher, and
two Heatec boilers)
J C Up to
s2,000 $589 $1,767
Total s3,534
20ohEarly
Settlement
Ontion
s707
Total
Penaltv $2,827
DAQC-1t2s-24
Page 6
(1) Category A. $7,000-10,000 per day.
Violations with high potential for impact on public health and the environment including:
(a) Violation of emission standards and limitations of NESHAP.
(b) Emissions contributing to nonattainment area or PSD increment exceedances.
(c) Emissions resulting in documented public health effects and/or environmental damage.
(2) Category B. $2,000-7,000 per day.
Violations of the Utah Air Conservation Act, applicable State and Federal regulations, and orders to
include:
(a) Significant levels of emissions resulting from violations of emission limitations or other regulations
which are not within Category A.
(b) Substantial non-compliance with monitoring requirements.
(c) Significant violations of approval orders, compliance orders, and consent agreements not within
Category A.
(d) Significant and/or knowing violations of "notice of intent" and other notification requirements,
including those of NESHAP.
(e) Violations of reporting requirements of NESHAP.
(3) Category C.Up to $2,000 per day.
Minor violations of the Utah Air Conservation Act, applicable State and Federal Regulations and orders
having no significant public health or environmental impact to include:
(a) Reporting violations
(b) Minor violations of monitoring requirements, orders and agreements
(c) Minor violations of emission limitations or other regulatory requirements.
(4) Category D.Up to $299.00.
Violations of specific provisions of R307 which are considered minor to include:
(a) Violation of automobile emission standards and requirements
(b) Violation of wood-buming regulations by private individuals
(c) Open buming violations by private individuals.
DAQC-1125-24
Page 7
R307-130-3.
Adjustments.
The amount of the penalty within each category may be adjusted andlor suspended in part based upon the
following factors:
(l) Good faith efforts to comply or lack of good faith. Good faith takes into account the openness in dealing
with the violations, promptness in correction of problems, and the degree of cooperation with the State to
include accessibility to information and the amount of State effort necessary to bring the source into
compliance.
(2) Degree of willfulness and/or negligence. In assessing willfulness and/or negligence, factors to be
considered include how much control the violator had over and the foreseeability of the events constituting
the violation, whether the violator made or could have made reasonable efforts to prevent the violation, and
whether the violator knew of the legal requirements which were violated.
(3) History of compliance or non-compliance. History of non-compliance includes consideration of
previous violations and the resource costs to the State ofpast and current enforcement actions.
(4) Economic benefit of non-compliance. The amount of economic benefit to the source of non-compliance
would be added to any penalty amount determined under this policy.
(5) Inability to pay. An adjustment downward may be made or a delayed payment schedule may be used
based on a documented inability of the source to pay.
R307-r30-4.
Options.
Consideration may be given to suspension of monetary penalties in trade-off for expenditures resulting in
additional controls and/or emissions reductions beyond those required to meet existing requirements.
Consideration may be given to an increased amount of suspended penalty as a deterrent to future violations
where
LISBON VALLEY MINTNG CO
29 August 2024
SUBJECI: Response to Compliance Advisory (CA)- Lisbon Valley Open Pit Copper Mine - Utah
Admlnistrative Code (UAC) R307401, Approval Order (AO) DAQE-AN114520015-21, San Juan County
Attn: Jared James,
Environmental Scientist - Minor Source Compliance
Utah Division of Air Quality
PO Box 144820
salt Lake City, UT 841,1,4-4820
DELIVERY: Electronic
Dear Mr. James,
Please see this response to the CA that was received by Lisbon Valley Mining Company (Company) on August
22,2024. This response is being provided to: a) ensure the Company has a thorough understanding of the
CA; b) propose a timeline for modification of the AO; and c) request a meeting to discuss the timeline for the
modification, and ensure such timeline/actions are agreeable with the Division.
Understanding of the CA
It is the Company's understanding that during the 2023 year, which year occurs from July 2022 until the end
of June 2023, the Company exceeded the following permit conditions:
Permit Condition: ll.A.2: Boilers
Violation: The Company operates three boilers; one primary and two secondary (see 2014 AO). lt appears
that the two secondary boilers were erroneously removed from the 2021 AO.
Company-proposed solution: The Company would like to be provided with the opportunity to modify its AO
to re-add the two secondary boilers that were erroneously removed during the 2021 AO Modification
process, as well as add a fourth boiler that is anticipated to be installed within l-2 months of this letter.
Permit Condition: ll.A.4: Various Pump Engines
Violation: The Company has a rental pump engine (Godwin) that is used during summertime.
Company-proposed solution: The Company anticipates the continued seasonal use of up to two (2) additional
pump engines. Therefore, the Company would like to be provided with the opportunity to modify its AO to
add spare or backup pump engines that the Company can operate on a seasonal basis.
Permit Condition: ll.A.5: Crusher
Violation: The Company has a rental crusher onsite that was not covered under a Temporary Relocation
Permit.
LVMC Response Re: Letter Dated August 22,2024 Page 11,
Company-proposed solution: The Company is expecting to replace the presently-permitted Jaw Crusher with
a similar-sized lmpact Crusher. The Company is also expecting to need to bring onsite a second crusher during
construction operations. Therefore, the Company would like to be provided with the opportunity to modify
its AO to replace the current Jaw Crusher with an lmpact Crusher of similar size, as well as provide a second
mobile crusher to the AO to allow flexibility for the Company to use during construction operations.
Permit Condition: ll.B.1.a: The owner/operator shall not use more than 15,000 tons of acid per 12-month
period.
Violation: The Company used over 15,000 tons of acid during the 12-month period defined herein. There was
no stated limit for the acid usage in the 2014 AO. The Company, while working with DAQ during the 2021
Modification, underestimated the increased acid consumption during the ramp-up back to full production
that occurred over the past three years.
Company-proposed solution: The Company has stabilized its mining rates and acid application rates.
Therefore, the Company would like to be provided with the opportunity to modify its AO to increase the acid-
usage rates based upon updated forecasts for the operation.
Permit Condition: ll.B.2.d: The owner/operator shall not exceed the following limits: 52 blasting episodes per
rolling 1-2-month period; 510 tons of ANFO used per rolling 12-month period.
Violation: The Company exceeded its total number of blasts as well as the total tons of ANFO for the rolling
12-month period as defined herein. There were no stated blast totals or ANFO limits in the 2014 AO. lt
appears that this estimate was based on a less aggressive mine plan than what was enacted by the Company.
Company-proposed solution: The Company has solidified its near-term mine plan, including mining rates,
blasting rates, and ANFO usage. Therefore, the Company will need to modify its AO to increase blasting and
ANFO usage based on the projected mine plan.
Proposed Timeline for Modification
The Company would like to propose that the proposed modifications set forth herein be made in the form
of a Notice of lntent to Modify, that will be submitted to the Division within 90 days of the date of this
letter.
Request to Meet with DAQ Representatives
The Company is requesting to meet with DAQ Representatives within 30 days of the date of this letter to
discuss any further areas in question regarding the operation, and to ensure the Division is amenable to the
proposed modification and timeline of such.
I look forward to hearing from you.
Environmentol Manoger
LVMC Response Re: Letter Dated August 22,2024 Page l2
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