Cameron Johnson (13996) Steven F. Alder (0033) Assistant Attorneys General MARK L. SHURTLEFF (4666) UTAH ATTORNEY GENERAL 1594 West North Temple, Suite 300 Salt Lake City, Utah 84116 Telephone: (801) 538-7227 Counsel for the Division of Oil, Gas, and Mining

F I LED NOV 29 2012

SECRETARY, BOARD OF OIL, GAS I. MINING

BEFORE THE BOARD OF OIL, GAS, AND MINING DEPARTMENT OF NATURAL RESOURCES

IN AND FOR THE STATE OF UTAH

00000

IN THE MATTER OF THE PETITION BY THE DIVISION OF OIL, GAS & MINING FOR AN ORDER AGAINST NEPHI SANDSTONE CORPORATION:

(1) WITHDRAWING OF THE SOMA MOTION FOR LEAVE TO FILE QUARRY'S NOTICE OF SUPPLEMENTAL EXHIBITS INTENTION TO COMMENCE SMALL MINING OPERATIONS; DOCKET NO.: 2012-038

(2) TO FORFEIT THE SURETY AND CAUSE NO.: S/023/0065 CERTIFICATES OF DEPOSIT;

(3) TO DIRECT THE DIVISION TO COMPLETE RECLAMATION, AND AUTHORIZE A CIVIL SUIT TO RECOVER COSTS FROM NEPHI SANDSTONE AND SOMA QUARRY, S/023/0065; AND

(4) TO TAKE ALL OTHER ACTIONS NECESSARY TO RECLAIM THE LANDS AT S22, TI4S, R3W SLB&M, JUAB COUNTY, UTAH.

00000

1

COMES NOW, the Utah Division of Oil, Gas & Mining ("Division"), by and through its

counsel of record, the Utah Attorney General's office, and pursuant to Utah Admin. Code R641-

105-300, and hereby requests the Board of Oil, Gas & Mining (the "Board") for leave to file the

following supplemental exhibit attached hereto and by this reference incorporated herein:

EXHIBIT "P"

EXHIBIT "Q"

Cessation Order MC-2010-42-06 issued by the Division to Nephi Sandstone Corporation for failure to maintain reclamation surety (2 pages)

October 4,2010 letter from the Division to Nephi Sandstone Corporation accompanying Cessation Order MC-2010-42-06 and requiring either a replacement surety or the commencement of reclamation by November 5,2010.

The supplemental exhibits provide necessary documentation concerning the enforcement actions

taken by the Division against the operator before this matter was brought before the Board.

Exhibits filed later than 30 days before the scheduled hearing date may be allowed by the

Board upon good cause shown (see Utah Admin Code R641-1 05-500). The hearing on this

matter is scheduled for December 5, 2012. The information contained in the exhibits at the

exhibit submission deadline was correct, however, the additional exhibits are necessary to show

the Division's efforts to work with the operator in good faith towards a solution outside of this

Board hearing. Additionally, the proposed supplemental exhibits are available to the public

through the Division's Minerals Files and therefore no party is prejudiced by this Motion.

Therefore, the Division respectfully requests this Motion for Leave be granted.

2

Dated this 1ft day of November, 2012.

Cameron Johnson

Assistant Attorney General

Counsel for Division of Oil, Gas, and Mining

1549 West North Temple, Suite 300

Salt Lake City, Utah 84114-5801

Telephone: (801) 538-7227

3

CERTIFICATE OF MAILING

I hereby certify that I caused a true and correct copy of the forgoing MOTION FOR LEAVE TO FILE SUPPLEMENTAL EXHIBITS to be personally served or mailed first class mail, postage prepaid, the 30th day of November, 2012, to:

Nephi Sandstone Corporation c/o Bruce H. Evans P.O. Box 137 Nephi, Utah 84648

Liberty Mutual Surety Attn: Stephani Miller P.O. Box 34670 Seattle, WA 98124

4

Zions Bank Attn: Raelynn Daniels One South Main St Salt Lake City, Utah 84133

Michael S. Johnson Assistant Attorney General Utah Board of Oil, Gas & Mining 1594 West North Temple, Suite 300 Salt Lake City, UT 84116 mikej ohnson@utah.gov [Via Email]

.Hatlon fOl4 Non M ·20 I 0-42 .. 0 o pllan lJhlh Mlncrltls Regulaatory Program

I ~I)" WOIIl North Tomplo, Snit Lukt! City. lJT 84114 Phone: (801) !,J8·~J40 FlU: (801) J~I) •• 19"O

Permit Numbllr: S/023/0065 10/04/2010

NOTlCt: 0.' VIOLATION C:t:SSATION OR[)l:R (CO) fi'AILlJIU~ l'U ABATF. CO

42 II"fllllll~" ~Km"l Ntll'hi Sutllislor1tl C"rpu !Il ion

----------------~ Mint !IIltmu: Sum" 'h\l, ur Intlpll~ tlon: 04/27/2010

Nllturt! or ... omlltlon, prltt-lIl'tI, lIr 10111

FllilLlr~ to maintain I '~chul\atiul\ lIufely,

pro"INlonM of Art,

R(I'17·J , 111.1.11 I"uilllrll 10 lilrnish lind l1luinf!lin r~~lltmllliut' !lur~ty

Ord\lr~ lind rdilur~ I~l Ablll~ C(J' dUll.:k below:

This order reqlllre~ Cessation of ALL milling Activities. 01'

Ces81ltlon of PORTION 8. Mining A('tlvltles to be censed ImmedlAtel :

,~.~ • 11 • •••• • ................ .... . .................... 'lI& ••• t.t •••• I .......... ,~ ... .

All mining activities not directly related to reclamation.

('ondill\)n, IlfclI:tlcc, or violo(ion iR IIrcnting 1111

In,minent donicr to hcnlth or ~Rfcty ofthll ~ublic,

Cunditiun. prullticil. or violation Is (;lIu~lnhl or I:on rClI8()nIlbly be expccled ttl couse ~llilnificllnt, imminent environmentlll hom, 10 Innd, air. or Willer re1iQurI:C:oi.

o

Abatement/corrective Rctiol1(lIlrf!'1ulred (for all Citations): . Provide adcqllntc !llIl·~ty ()f I\')clllim the "He.

P~rmith:c/Opl.!rtIhH i~/hlls been condullting mlnirllot octivlth:s withuut (\ Pl.!fmll.

Permittee hH~ foiled to /Ibote Violation Included In

('ilfllloll II

IIb"tum~nl ori

within timll IiJr

Provide surety by November S, 20 10. Begin reclamation by November S, 2010 and completed December 7, 2010

Wayne H, Western

10/04/20 10

undd lUI I HUl h Irlt. II r pr nlltl vo Cll nlll)n II th lImn f'u lie ,II

I hi ~ HHllun ~hllll ron",ln In gtl~Ulll"llIlll ~ nwdlnod, hmnlllithlu ur vllca.ted b,Y written noliel) Orllfl "ulhurl~i!d reprelllntllllvl (1f f) i M,

., P!NAI,TIE!IJ,

1,

3, FOItM,o\L REVI~W "NO , 'EMPORARY IU:LJtF, III 1111 ill pClIllllf cit 1IU11111h Ii' /url! of DII, (I N. II rl Ml llhl", ny Hul1miuin : \) Il I It HI /1)r h lJllrln~ 1\1 UIl' ( ollrd with n 0

" "Y \11' rc II'I til , /loti · " urt! r llr V I'\! \.1fl ll III 111: U I1 ~ b) on om Unl l:)(llInl II Ih prop" d. r 'lI I.l I 'd ur (lmrm .J r)lllt l it to Ih I I L lOll , S ' I ' l 'hllI dOl in , ( lid KM7· 7, 1071,)1. Seq, Plell81l Mubmlt rhg IIpplicRtlun fur hllurlnQ 10:

S.eretary 1)0(11'(1 01' 0 11 ' II II nd I II ln 1:'\'" \ « orl lt ' mllic. Suit 1210 PO 80 14!S80 1 Salt Lake Clty,Utah H4114·~801

_pply 11/& lor " rtlml I booril hcurllll.l, 'VII m I ~lIhr1l lf \ " " Y /\If P -lIl lt", f(, r n:vicw I r tltlO r fh. " /111II/ lllra r,I' r/!II, 'I rn Ihis itlIl IIHl , Pr()l.'cdllr . fur lluilllnlt II form,,1 b\l I'd hell Ilj.l If ' C\ IlIlu inl1d flltlle Ho I'd' l<lIle nf l'ru 'II" lll1 ~ r 'c ur.: MU In

I '\lIh ~mln.· d KM 7.' 'I, l'lI,

4, INDIVlIlt I.4L CIVIL PENALTIES.

rk

II oddltl II nllll(JivilJu I 'Ivl! P no lly or tip II.) ~S,OOO per lilY ol Y II ~ It! 1114111n « (J corp ((\(0 d rc 11)(, f ccr (\ ' tll wlrv knl wlnuly fUll willful! Iflhor Ie . Ilrlf 'r ~ or curri d uUl II v \1 1111 / II Ir wll rilil r rofu . o. In \ nlil ly wllh It \Ird r. flor [urthuf Infurlllllli n. C:OII ull lJ rll !1 ( \ " \ 1111 . § 'IO·R·C) Ihrl\ lIgh 40·8·9,1 wd Jtuli dm in. ( 'nl1 I{(, 7·6 lhrouloI lJ H1}117·8 cl. eq .. r c: 11111 'I Lh I Ivl lin nfC II, II , lUU linin~ nr(HO I) ~)8.S340 .

t of t h ",'"

DEPARTMENT OF NAtURAL RESOUltCU I\lItll"l:l. N, ~n t.U

UAR\' N, i U:RDtRr

UNUm", /II, D~U. lj~UM/("" r illl'tl'llllr

lift'! ~1Ih! illl'!!(.'I','

DI\,I.lon orOll, ~u lind Mining JOW~ 14. DM.'\ , ,'"'I\/rlll /I1N!UI'r

Olltobl1r 4. 20 10

CERiWIED RETURN RECEIPT 7005 0390 000 7~07 47~7

Brlll.:11 EYof1s N13phi Sllnd8t0I1~ CorporlUilll1 1250 Nurth 200 WeNt p, 0, SUK 137 Nephi. Utah 84648

Subject:

Dear Mr, Evon!!:

On July 8. 2010. Ih&: Diyi810M of 011. GIlS and Mining WAil MotHied by Liberty Mutuollnliuronce Company th"t rcoillmntion bond would be cancelled CJO dOYII from the Division'" receipt of the notice. The I i i i 11 uh, 'III III I \ r I d to ld (1 11 Ih I r pltH:() tn 111 b lid would 11 0 tu bu r rov d db pt 'mb",r . 2 I . I f' II rcp lllc~m III \ n lit j, r'e I d h thllt I t I th ~ I li i )1I wotd t . 'He 0 C ntl 11 ('d 40: 1' lind re~ l ulro In Il'1crl I I !' ''I lin '1/11 f lll ' lIl l" .

Iction, PleAse cnlllTll: at 801·538·5261 or Wn)'lle Wcstom ot 801·538·5263 if you hnve qucstlonlll1bout this

MIIW II

J '\J4 W~I North I ~mpl~, !lulll1 12 JI), I'(} fiox (dnOI, Snit Lllkil Clly, liT W 14.~801 tl'l~phon~ (Hili) 'JK·~Wl. fIIcllmllu (HOI) ",)·;\94u. TTY 1801) H~.7.,,". WII:IV,UK'II,I/II1h.I(fIV

.. 10/o!/aOl0 ~UI 08123 FAX 1ZI001

----------------------------------------------------~-=~----~

.TOD NO.

.t** •• * ••••••••• * •••• *** rAX 'l'X RJPO~'l' ••• • *.** ••••••••• * ••••••

'1'MNIMIIIIUON 01(

Dm6~lNATI0N ACCRl08 8 UDMCPJl811 ClIM'1'INA'1'ION HI

OU? 143!U323U

QT. 'l'%MI 'l'X/IUC 'l'IMI P(lll. gnut.'l'

Mr, £\ruc~ EVU"K

Nuphl SundHtonlJ ('nrpm"!lon 12~O North 20() WIJHt 1',0, Box J J7 Nc:~hl, (1'1' 846414

lO/O! 0111 22 DO' 52 2 OJ(

(

t

)

I\luu.:hl:41l'lc:nsc: n,,~1l1 copy uf Ih~ l~n~I' 10 1,lb~I'ty Mulll,,1 dilt~d October 4,20 I 0

pIJI' tlte ollclol!lurlJ "util1cutim, on l!tlol h~ttl:l' Html In yuu ('\;II'tintd Return Receipt

thut Inndv I'{ li lly Wfl~ l11illslnu. this lufol'l11"tlon, I ,,~olowize for th'" ovcl'siWhl.

. ~.!j~ Divltjlull ufOll, Ons & Minlnw, I ~94 W~1I1 NOI'th Tempi", Sulle 121 () P,O, ROle 14SROI Suit Luku Clly. t 11' 84114·580 I

(

Cameron Johnson (13996) Steven F. Alder (0033) Assistant Attorneys General MARK L. SHURTLEFF (4666) UTAH ATTORNEY GENERAL 1594 West North Temple, Suite 300 Salt Lake City, Utah 84116 Telephone: (801) 538-7227 Counsel for the Division of Oil, Gas, and Mining

BEFORE THE BOARD OF OIL, GAS, AND MINING DEPARTMENT OF NATURAL RESOURCES

IN AND FOR THE STATE OF UTAH

00000

IN THE MATTER OF THE PETITION BY THE DIVISION OF OIL, GAS & MINING FOR AN ORDER AGAINST NEPHI SANDSTONE CORPORATION:

(1) WITHDRAWING OF THE SOMA QUARRY'S NOTICE OF INTENTION TO COMMENCE SMALL MINING OPERATIONS;

(2) TO FORFEIT THE SURETY AND CERTIFICATES OF DEPOSIT;

(3) TO DIRECT THE DIVISION TO COMPLETE RECLAMATION, AND AUTHORIZE A CIVIL SUIT TO RECOVER COSTS FROM NEPHI SANDSTONE AND SOMA QUARRY, S/023/0065; AND

(4) TO TAKE ALL OTHER ACTIONS NECESSARY TO RECLAIM THE LANDS AT S22, T14S, R3W SLB&M, JUAB COUNTY, UTAH.

[PROPOSED] ORDER GRANTING LEAVE TO FILE SUPPLEMENTAL EXHIBITS

DOCKET NO.: 2012-038 CAUSE NO.: S/023/0065

00000

1

The Board of Oil, Gas and Mining, having fully considered the Utah Division of Oil, Gas

and Mining's ("Division") Motion for Leave to File Supplemental Exhibits filed on November

29,2012, and finding good cause therefroe, hereby grants said Motion and authorizes the filing

and acceptance of Supplemental Exhibits"P" and "Q" attached to the Division's Motion.

For all purposes, the Chairman's signature on a faxed copy of this Order shall be deemed

the equivalent of a signed original.

Dated this _ day of November, 2012.

STATE OF UTAH

BOARD OF OIL, GAS AND MINING

By: ------------------------------

2

James T. Jensen Chairman

CERTIFICATE OF MAILING

I hereby certify that I caused a true and correct copy of the forgoing ORDER GRANTING LEAVE TO FILE SUPPLEMENTAL EXHIBTS to be personally served or mailed first class mail, postage prepaid, the day of November, 2012, to:

NEPHI SANDSTONE CORPORATION

C/O BRUCE H. EVANS

P.O. BOX 137

NEPHI, UTAH 84648

LIBERTY MUTUAL SURETY

ATTN: STEPHANI MILLER

P.O. BOX 34670

SEATTLE, WA 98124

ZIONS BANK

ATTN: RAEL YNN DANIELS

ONE SOUTH MAIN ST

SALT LAKE CITY, UTAH 84133

[VIA EMAIL]

MIKE JOHNSON

ASSISTANT ATTORNEY GENERAL

BOARD OF OIL, GAS & MINING

3

4