Part 845. Civil Penalties
4VAC25-130-845.2. Objective.
Civil penalties are assessed under § 45.2-1021 of the Act and this Part to deter violations and to ensure maximum compliance with the terms and purposes of the Act on the part of the coal mining industry.
Statutory Authority
§ 45.2-103 of the Code of Virginia.
Historical Notes
Derived from VR480-03-19 § 845.20, eff. December 15, 1981; amended, eff. June 28, 1982; October 28, 1982; December 14, 1982; October 11, 1983; December 27, 1983; May 8, 1984; June 22, 1984; August 2, 1984; October 16, 1985; January 7, 1987; July 22, 1987; November 25, 1987; October 12, 1988; December 26, 1990; July 1, 1991; July 17, 1991; November 20, 1991; July 7, 1992; May 5, 1993; October 19, 1994; Volume 38, Issue 13, eff. March 31, 2022.
4VAC25-130-845.11. Assessment determination.
The division shall review each notice of violation and cessation order in accordance with the assessment procedures described in 4VAC25-130-845.12, 4VAC25-130-845.13, 4VAC25-130-845.15, and 4VAC25-130-845.16 to determine whether a civil penalty will be assessed, the amount of the penalty, and whether each day of continuing violation will be deemed a separate violation for purposes of the total penalty assessed.
Statutory Authority
§§ 45.1-161.3 and 45.1-230 of the Code of Virginia.
Historical Notes
Derived from VR480-03-19 § 845.11, eff. December 15, 1981; amended, eff. June 28, 1982; October 28, 1982; December 14, 1982; October 11, 1983; December 27, 1983; May 8, 1984; June 22, 1984; August 2, 1984; October 16, 1985; January 7, 1987; July 22, 1987; November 25, 1987; October 12, 1988; December 26, 1990; July 1, 1991; July 17, 1991; November 20, 1991; July 7, 1992; May 5, 1993; October 19, 1994.
4VAC25-130-845.12. When a penalty will be assessed.
(a) The division shall assess a penalty for each cessation order.
(b) The division may assess a penalty for each notice of violation. In determining whether to assess a penalty, the division shall consider the seriousness of the violation, the permittee's previous history of violations, the degree of negligence, and the permittee's good faith in attempting to achieve rapid compliance after notification of the violation, as described in 4VAC25-130-845.13.
Statutory Authority
§§ 45.1-161.3 and 45.1-230 of the Code of Virginia.
Historical Notes
Derived from VR480-03-19 § 845.12, eff. December 15, 1981; amended, eff. June 28, 1982; October 28, 1982; December 14, 1982; October 11, 1983; December 27, 1983; May 8, 1984; June 22, 1984; August 2, 1984; October 16, 1985; January 7, 1987; July 22, 1987; November 25, 1987; October 12, 1988; December 26, 1990; July 1, 1991; July 17, 1991; November 20, 1991; July 7, 1992; May 5, 1993; October 19, 1994.
4VAC25-130-845.13. Point system.
The division shall use the point system described in this section to determine the amount of the penalty.
(a) Seriousness. The division shall assign up to 10 points based on the seriousness of the violation in accordance with the following.
Points:
0 No actual or potential damage to the environment or threat to public health and safety.
1-2 Slight actual or potential damage to the environment and no actual or potential threat to public health and safety; also violations of administrative requirements which can be quickly corrected and which do not obstruct enforcement by the division.
3-4 Moderately significant actual or potential damage to the environment which can be corrected promptly; also actual or potential minor hazard to the public health and safety; also violations of administrative requirements which can be corrected after some delay, and which tend to hamper or obstruct enforcement by the division.
5-6 Moderately significant actual or potential damage to the environment which can be corrected only after a substantial effort or period of time; also actual or potential moderately significant hazard to the public health and safety.
7-8 Substantial actual or potential damage to the environment which can be corrected only after a substantial effort or period of time; also extremely serious potential damage to the environment; also substantial actual or potential damage to the public health and safety.
9-10 Extremely serious actual damage to the environment; also extreme actual or potential hazards to the public health and safety.
(b) Negligence.
(1) The division shall assign up to six points based on the degree of fault of the person to whom the notice or order was issued in causing or failing to correct the violation, condition, or practice which led to the notice or order, either through act or omission. Points shall be assessed as follows:
(A) A violation which occurs through no negligence shall be assigned no penalty points for negligence;
(B) A violation which is caused by negligence shall be assigned three points or less, depending on the degree of negligence;
(C) A violation which occurs through a greater degree of fault than negligence shall be assigned four to six points, depending on the degree of fault.
(2) In determining the degree of negligence, involved in a violation and the number of points to be assigned, the following definitions apply:
(A) No negligence means an inadvertent violation which was unavoidable by the exercise of reasonable care.
(B) Negligence means the failure of a permittee to prevent the occurrence of any violation of the permit or any requirement of the Act or this chapter due to indifference, lack of diligence, or lack of reasonable care, or the failure to abate any violation of such permit or the Act due to indifference, lack of diligence, or lack of reasonable care.
(C) A greater degree of fault than negligence means reckless, knowing, or intentional conduct.
(3) In calculating points to be assigned for negligence, the acts of all persons working on the coal exploration or surface coal mining and reclamation site shall be attributed to the person to whom the notice or order was issued, unless that person establishes that they were acts of deliberate sabotage.
(c) Credit for good faith in attempting to achieve compliance.
(1) The division shall deduct from the total points assigned under subsections (a) and (b) of this section points based on the demonstrated good faith of the permittee in attempting to achieve rapid compliance after notification of the violation. Points shall be deducted as follows:
(i) three to four points shall be deducted when the permittee to whom the notice or order was issued took extraordinary measures to abate the violation in the shortest possible time and that abatement was achieved before the time set for abatement.
(ii) one to two points shall be deducted when the permittee to whom the notice or order was issued took prompt and diligent efforts to promptly abate the violation and that abatement was achieved before the time set for abatement.
(2) If the consideration of this criterion is impractical because of the length of the abatement period, the calculation of points may be made without considering this criterion and may be re-calculated after the violation has been abated.
(d) Determination of base penalty.
The division shall determine the base amount of any civil penalty by converting the total number of points calculated under subsections (a), (b), and (c) of this section to a dollar amount, according to the following schedule:
| Points | Dollars |
| Points | Dollars |
| 1 | 50 |
| 9 | 1050 |
| 2 | 100 |
| 10 | 1350 |
| 3 | 175 |
| 11 | 1700 |
| 4 | 250 |
| 12 | 2050 |
| 5 | 325 |
| 13 | 2400 |
| 6 | 400 |
| 14 | 2750 |
| 7 | 475 |
| 15 | 3100 |
| 8 | 750 |
| 16 | 3500 |
(e) Credit and additional penalties for previous history.
(1) Except for a violation that resulted in personal injury or fatality to any person, the division shall reduce the base penalty determined under subsection (d) of this section by 10% if the permittee has had no violations cited by the division within the preceding 12-month period.
(2) The division shall add to the base penalty determined under subsection (d) of this section additional sums for the permittee's previous history of violations as follows:
(i) Twenty dollars for each violation contained in a notice of violation, up to 10 of such violations;
(ii) Fifty dollars for each violation contained in a notice of violation, in excess of 10 violations;
(iii) One hundred dollars for each violation contained in a cessation order.
(3) A violation shall not be counted if the notice or order is the subject of pending administrative or judicial review or if the time to request such review has not expired, and thereafter it shall be counted for only one year; provided however, that a violation which is subject to administrative or judicial review, or for which the time to request such review has not expired, shall not be disregarded for the purpose of obtaining a 10% reduction pursuant to subdivision (e)(1) of this section, unless such administrative or judicial review results in the vacation of the penalty.
(4) No violation for which the notice or order has been vacated shall be counted.
(5) Each violation shall be counted without regard to whether it led to a civil penalty assessment.
(f) The maximum penalty which the division may assess under this section for each cessation order or notice of violation shall be $5,000, except that if the violation resulted in a personal injury or fatality to any person, then the civil penalty determined under subsection (d) of this section shall be multiplied by a factor of 20, not to exceed $70,000. As provided in 4VAC25-130-845.15, each day of continuing violation may be deemed a separate violation for the purpose of assessing penalties.
Statutory Authority
§§ 45.1-161.3 and 45.1-230 of the Code of Virginia.
Historical Notes
Derived from VR480-03-19 § 845.13, eff. December 15, 1981; amended, eff. June 28, 1982; October 28, 1982; December 14, 1982; October 11, 1983; December 27, 1983; May 8, 1984; June 22, 1984; August 2, 1984; October 16, 1985; January 7, 1987; July 22, 1987; November 25, 1987; October 12, 1988; December 26, 1990; July 1, 1991; July 17, 1991; November 20, 1991; July 7, 1992; May 5, 1993; October 19, 1994; Virginia Register Volume 23, Issue 13, eff. April 4, 2007.
4VAC25-130-845.15. Assessment of separate violations for each day.
(a) The division may assess separately a civil penalty for each day from the date of issuance of the notice of violation or cessation order to the date set for abatement of the violation. In determining whether to make such an assessment, the division shall consider the factors listed in 4VAC25-130-845.13 and may consider the extent to which the person to whom the notice or order was issued gained any economic benefit as a result of a failure to comply. For any violation which continues for two or more days and which has been assigned a penalty of $5,000 or more under 4VAC25-130-845.13, the division shall assess a penalty for a minimum of two separate days.
(b) In addition to the civil penalty provided for in subsection (a) of this section, whenever a violation contained in a notice of violation or cessation order has not been abated within the abatement period set in the notice or order or as subsequently extended pursuant to § 45.2-1020 of the Act, a civil penalty of not less than $750 shall be assessed for each day during which such failure to abate continues, except that:
(1)(i) If suspension of the abatement requirements of the notice or order is ordered in a temporary relief proceeding under § 45.2-1025 of the Act, after a determination that the person to whom the notice or order was issued will suffer irreparable loss or damage from the application of the requirements, the period permitted for abatement shall not end until the date on which the director or his authorized representative issues a final order with respect to the violation in question; and
(ii) If the person to whom the notice or order was issued initiates review proceedings under § 45.2-1027 of the Act with respect to the violation, in which the obligations to abate are suspended by the court pursuant to § 45.2-1027 of the Act, the daily assessment of a penalty shall not be made for any period before entry of a final order by the court;
(2) Such penalty for the failure to abate the violation shall not be assessed for more than 30 days for each such violation. If the permittee has not abated the violation within the 30 day period, the division shall take appropriate action pursuant to §§ 45.2-1020 and 45.2-1021 of the Act within 30 days to ensure that abatement occurs or to ensure that there will not be a reoccurrence of the failure to abate.
Statutory Authority
§ 45.2-103 of the Code of Virginia.
Historical Notes
Derived from VR480-03-19 § 845.20, eff. December 15, 1981; amended, eff. June 28, 1982; October 28, 1982; December 14, 1982; October 11, 1983; December 27, 1983; May 8, 1984; June 22, 1984; August 2, 1984; October 16, 1985; January 7, 1987; July 22, 1987; November 25, 1987; October 12, 1988; December 26, 1990; July 1, 1991; July 17, 1991; November 20, 1991; July 7, 1992; May 5, 1993; October 19, 1994; Volume 38, Issue 13, eff. March 31, 2022.
4VAC25-130-845.16. Waiver of use of formula to determine civil penalty.
(a) The Director or his designee, upon his own initiative or upon written request received within 15 days of issuance of a notice of violation or a cessation order, may waive the use of the formula contained in 4VAC25-130-845.13 to set the civil penalty, if he determines that, taking into account exceptional factors present in the particular case, the penalty is demonstrably unjust. However, the Director or his designee shall not waive the use of the formula or reduce the proposed assessment on the basis of an argument that a reduction in the proposed penalty could be used to abate violations of the Act, this chapter, or any condition of any permit or exploration approval. The basis for every waiver shall be fully explained and documented in the records of the case.
(b) If the Director or his designee waives the use of the formula, he shall use the criteria set forth in 4VAC25-130-845.13 to determine the appropriate penalty. When the Director or his designee has elected to waive the use of the formula, he shall give a written explanation of the basis for the assessment made to the person to whom the notice or order was issued.
Statutory Authority
§§ 45.1-161.3 and 45.1-230 of the Code of Virginia.
Historical Notes
Derived from VR480-03-19 § 845.16, eff. December 15, 1981; amended, eff. June 28, 1982; October 28, 1982; December 14, 1982; October 11, 1983; December 27, 1983; May 8, 1984; June 22, 1984; August 2, 1984; October 16, 1985; January 7, 1987; July 22, 1987; November 25, 1987; October 12, 1988; December 26, 1990; July 1, 1991; July 17, 1991; November 20, 1991; July 7, 1992; May 5, 1993; October 19, 1994.
4VAC25-130-845.17. Procedures for assessment of civil penalties.
(a) Within 15 days of service of a notice or order, the person to whom it was issued may submit written information about the violation to the division and to the inspector who issued the notice of violation or cessation order. The division shall consider any information so submitted in determining the facts surrounding the violation and the amount of the penalty.
(b) The division shall serve a copy of the proposed assessment and the computation of the proposed assessment on the person to whom the notice or order was issued, by certified mail, or by any means consistent with the Rules of the Supreme Court of Virginia governing service of a summons or complaint, within 30 days of the issuance of the notice or order.
(1) If the mail is tendered at the address of that person set forth in the sign required under 4VAC25-130-816.11 or 4VAC25-130-817.11, or at any address at which that person is in fact located, and the person refuses to accept delivery of or to collect such documents, the requirements of this paragraph shall be deemed to have been complied with upon such tender. It is the permittee's responsibility to ensure the division has his current address.
(2) Failure by the division to serve any proposed assessment within 30 days shall not be grounds for dismissal of all or part of such assessment unless the person against whom the proposed penalty has been assessed—
(i) Proves actual prejudice as a result of the delay; and
(ii) Makes a timely objection to the delay. An objection shall be timely only if made in the normal course of administrative review.
(c) Unless a conference has been requested, the division shall review and reassess any penalty if necessary to consider facts which were not reasonably available on the date of issuance of the proposed assessment because of the length of the abatement period. The division shall serve a copy of any such reassessment in the manner provided in paragraph (b), within 30 days after the date the violation is abated.
Statutory Authority
§§ 45.1-161.3 and 45.1-230 of the Code of Virginia.
Historical Notes
Derived from VR480-03-19 § 845.17, eff. December 15, 1981; amended, eff. June 28, 1982; October 28, 1982; December 14, 1982; October 11, 1983; December 27, 1983; May 8, 1984; June 22, 1984; August 2, 1984; October 16, 1985; January 7, 1987; July 22, 1987; November 25, 1987; October 12, 1988; December 26, 1990; July 1, 1991; July 17, 1991; November 20, 1991; July 7, 1992; May 5, 1993; October 19, 1994; Virginia Register Volume 15, Issue 6, eff. January 6, 1999.
4VAC25-130-845.18. Procedures for assessment conference.
(a) The division shall arrange for a conference to review the proposed assessment or reassessment, upon written request of the person to whom notice or order was issued, if the request is received within 30 days from the date the proposed assessment or reassessment is served.
(b)(1) The division shall assign a conference officer to hold the assessment conference. The assessment conference shall be conducted as an informal proceeding in accordance with § 2.2-4019 of the Code of Virginia. The assessment conference shall be held within 60 days from the date the conference request is received or the end of the abatement period, whichever is later. Provided that a failure by the division to hold such conference within 60 days shall not be grounds for dismissal of all or part of an assessment unless the person against whom the proposed penalty has been assessed proves actual prejudice as a result of the delay.
(2) The division shall post notice of the time and place of the conference at the division's office in Big Stone Gap or field office located closest to the mine at least five days before the conference. Any person shall have a right to attend and participate in the conference.
(3) The conference officer shall consider all relevant information on the violation. Within 30 days after the conference is held, the conference officer shall either:
(i) Settle the issue, in which case a settlement agreement shall be prepared and signed by the division and by the person assessed; or
(ii) Affirm, raise, lower, or vacate the penalty.
(4) An increase or reduction of a proposed civil penalty assessment of more than 25% and more than $500 shall not be final and binding on the division, until approved by the director or his designee.
(c) The division shall promptly serve the person assessed with a notice of the conference decision in the manner provided in 4VAC25-130-845.17 (b) and shall include a worksheet if the penalty has been raised or lowered. The reasons for the conference officer's action shall be fully documented in the file.
(d)(1) If a settlement agreement is entered into, the person assessed will be deemed to have waived all rights to further review of the violation or penalty in question, except as otherwise expressly provided for in the settlement agreement. The settlement agreement shall contain a clause to this effect.
(2) If full payment of the amount specified in the settlement agreement is not received by the division within 30 days after that date of signing, the division may enforce the agreement or rescind it and proceed according to subdivision (b)(3)(ii) of this section within 30 days from the date of the rescission.
(e) The conference officer may terminate the conference if it is determined that the issues cannot be resolved or that the person assessed is not diligently working toward resolution of the issues.
(f) At any formal review proceedings under §§ 45.2-1020, 45.2-1021, and 45.2-1025 of the Act, no evidence as to statements made or evidence produced by one party at a conference shall be introduced as evidence by another party or to impeach a witness.
Statutory Authority
§ 45.2-103 of the Code of Virginia.
Historical Notes
Derived from VR480-03-19 § 845.20, eff. December 15, 1981; amended, eff. June 28, 1982; October 28, 1982; December 14, 1982; October 11, 1983; December 27, 1983; May 8, 1984; June 22, 1984; August 2, 1984; October 16, 1985; January 7, 1987; July 22, 1987; November 25, 1987; October 12, 1988; December 26, 1990; July 1, 1991; July 17, 1991; November 20, 1991; July 7, 1992; May 5, 1993; October 19, 1994; Volume 38, Issue 13, eff. March 31, 2022.
4VAC25-130-845.19. Request for hearing.
(a) The person charged with the violation may contest the proposed penalty or the fact of the violation by submitting a petition and an amount equal to the proposed penalty or, if a conference has been held, the reassessed or affirmed penalty to the division (to be held in escrow as provided in subsection (b) of this section) within 30 days from receipt of the proposed assessment or reassessment or 30 days from the date of service of the assessment conference decision, whichever is later. The fact of the violation may not be contested if it has been decided in a review proceeding commenced under 4VAC25-130-843.16.
(b) The division shall transfer all funds submitted under subsection (a) of this section to the State Treasurer's Office which shall hold them in escrow pending completion of the administrative and judicial review process, at which time it shall disburse them as provided in 4VAC25-130-845.20.
(c) The hearing requested pursuant to a petition filed under subsection (a) of this section shall be conducted as a formal hearing in accordance with the provisions of § 2.2-4020 of the Code of Virginia. The hearing officer shall cause an accurate verbatim record of the hearing to be made. The division may charge the reasonable cost of preparing such record to any party to the hearing who requests a copy of the record.
(d) All requests for hearing, or appeals for review and reconsideration made under this section; and all notices of appeal for judicial review of a hearing officer's final decision, or the final decision on review and reconsideration shall be filed with the Director, Division of Mined Land Repurposing, Department of Energy, 3405 Mountain Empire Road, Big Stone Gap, Virginia 24219.
Statutory Authority
§ 45.2-103 of the Code of Virginia.
Historical Notes
Derived from VR480-03-19 § 845.20, eff. December 15, 1981; amended, eff. June 28, 1982; October 28, 1982; December 14, 1982; October 11, 1983; December 27, 1983; May 8, 1984; June 22, 1984; August 2, 1984; October 16, 1985; January 7, 1987; July 22, 1987; November 25, 1987; October 12, 1988; December 26, 1990; July 1, 1991; July 17, 1991; November 20, 1991; July 7, 1992; May 5, 1993; October 19, 1994; Volume 38, Issue 13, eff. March 31, 2022.
4VAC25-130-845.20. Final assessment and payment of penalty.
(a) If the person to whom a notice of violation or cessation order is issued fails to request a hearing as provided in 4VAC25-130-845.19, the proposed assessment shall become a final order of the Director and the penalty assessed shall become due and payable upon expiration of the time allowed to request a hearing.
(b) If any party requests judicial review of a final order of the Director, the proposed penalty shall continue to be held in escrow until completion of the review. Otherwise, subject to Paragraph (c) of this section, the escrowed funds shall be transferred to the State Treasurer's Office in payment of the penalty, and the escrow shall end.
(c) If the final decision in the administrative and judicial review results in an order reducing or eliminating the proposed penalty assessed under this Part, the division shall within 30 days of receipt of the order refund to the person assessed all or part of the escrowed amount, with accrued interest from the date of payment into escrow to the date of the refund.
(d) If the review results in an order increasing the penalty, the person to whom the notice or order was issued shall pay the difference to the division within 15 days after the order is mailed to such person.
(e) Failure to submit the penalty amount to the division shall result in the issuance of a show cause order pursuant to 4VAC25-130-843.13.
Statutory Authority
§§ 45.1-161.3 and 45.1-230 of the Code of Virginia.
Historical Notes
Derived from VR480-03-19 § 845.20, eff. December 15, 1981; amended, eff. June 28, 1982; October 28, 1982; December 14, 1982; October 11, 1983; December 27, 1983; May 8, 1984; June 22, 1984; August 2, 1984; October 16, 1985; January 7, 1987; July 22, 1987; November 25, 1987; October 12, 1988; December 26, 1990; July 1, 1991; July 17, 1991; November 20, 1991; July 7, 1992; May 5, 1993; October 19, 1994.