EXHIBIT B

Penalty Calculation Methodology Worksheet - Version Date: 6/24/2010Password for Workbook Protection: enforcement

Discharger Name/ID: Richar(lSykora· Red Ink Maid & Big Seam MineViolation Category #1 • Unauthorized Discharges

Polential Harm Factor Generated from Button)Per Gallon Factor (Generated from Button)GallonsStatutory / Adjusted Max per Gallon ($)

TotalPer Day Factor (Generated from Button)DaysStatutory Max per DayTotal

Per Day FactorDaysStatutory Max per DayTotal

Initial Amount of the ACL

Ste 1Step 2

Step 5Step 6

Step?

Step 8

Step 9

CulpabilityCleanup and CooperationHistory of Violations

Total Base Liability AmountAbility to Pay & to Continue in Business

Other Factors as Justice May RequireStaff Costs'

Economic Benefit

Minimum Liability AmountMaximum Liability Amount

Final Liability Amount

$ 20,000

$20,000$ 20,000

$

Select Item PoSelect ItemSelect ItemSelect Item

1,500.00

2,100.002,940.002,940.002,940.002,940.00

2,940.002,940.00

22,000.00

110000.00

1,500.00

2,100.002,940.002,940.00

~i~~tn:;~;~·~1:E;iJ,2"'··'···'''··~······:·'''·''~·, , :': .If select P~tential Harm for 'Discharge Violations12. ~ele~>.C~a~~q~·rjstics9f~~eOisch~rge .'13.Select Slls~ptibillty to Cleanllp or Abatement14. Select Deviation from Standard15. Ciic'k,~Qet~;rn.i!1e.Harrn & per Gallon/Day ...••

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DIscharger NamellD; Rlchard Sykora· Red 'Ink Maid & BI~ Seam'Mlne ATIACHMENTB

Violation CateoorY j2 • Annual Reoorts WDAs Violation 1 ~2007'·2008 Annual WDR Reoort Violation 2 - 2008·2009 Annual WDR ReDan VIolation 3·2009·2010 Annual WOA Report Violation 4 - 2010-201 1 Annual WOR ReDort

~ Step 1 POIEW"ltialHarm Facior Generated from Button . :r ',. Pc>' , '·'t P ""'''d,<'' %f:Yf)W1f

• Step 2 Per Gallon Faclor (Genera led trom Bullon) ,.' , " P'"/ .' " .• )2#,GallOns

I Statutory I AdlustElO MalCpElf GalIOn ($)

Total $ $ $ $

Per Day Factor (Generated Irom BUllon) <, .s

:;,i~ilii;:i~jl~l~lii]f. .

Days

Statutory Max per Day ..

Total $ $ $

Ii Step 3 PElf Day Factor 0.3 · ...M.;"",., 0.3

'.i:'~~,£:~'0.3 'j', 0.3

Days 18 18 18 16]~ Statutory Max per Day $ 1,000 , $ 1,000 $ 1.000 $ 1,000Total $ 5.400.00 $ 5.400.00 $ 5.400.00 $ 4.800 00

Inl11al Amount ot 1he ACL $ 5,400.00 $ 5,400.00 $ 5,400.00 $ 4.800.00

H Step 4 Culpability 1.3 $ 7.020.00 1.3 $ 7.020.00 1.3 $ 7.020.00 1.3 $ 6.24000

: Cleanup and Cooperation 1.3 $ 9,126.00 1.3 $ 9.126.00 1.3 $ 9.126.00 1.3 $ 8,lt2,00

History ot Violations 1 $ 9.126.00 1 $ 9.126,00 1 $ 9.126.00 I $ 8.112.00

SteD 5 Total Base lIabllitv Amount $ 35,490.00Step 6 Abilitv 10 Pay & 10 Continue in Business 1 $ 35.490.00

Step 7 Other Factors as Justice May Require 1 $ 35.490.00Siall Cosls· $ 35.490.00

Step 8 Economic Benefi1 $ 3,500 $ 35,490.00

Step 9 Minimum liability Amount $3.850 '.';~:yMaximum liabllit Amount $ 1,403,000

Step 10 Final LIability Amount '.' ; $ 35,490.00

Penalty Day Range Generator

Slart Date 01 Violation=rl2J08End Date of Violation=711109

Maximum Days Fined (Sleps 2 & 3) = 365 DaysMinimum Oa s Fined $t s2&3= 16 Da s

Penalty Day Range Generator

Start Dale 01 Vjolation= 1712109End Dale 01 Violalion=7/1110

MalCimum Oays Fined (Steps 2 & 3) :::: 365 DaysMinimum Da s Fined St s2&3= 16 Da s

Penally Day Range Generator

Start Date of Violation::::1712J10End Dale of Violalion=7/1/11

MalCimum Days Fined (Steps 2 & 3) :::: 365 DaysMinimum Da s Fined $1 s 2 & 3 :::: 16 Das

Penalty Day Range Generator

Start Date ot Violation"'1712J11End Date 01 Violatlon= 514/12

MalCimum Days Fined (SlepS 2 & 3) = 308 DaysMinimum Da s Fined (SI s 2 &3 = 16 Das

Discharger NamellD: Richard Sykora :'-Retiln" Maid &-Big Seam'MineViolation Category #3 - Facility Inspection ReportsPotential Harm Factor (Genera led from Button)Per Gallon Factor (Generated from Button)GallonsStatutory 1 Adjustad Max per Gallon ($)TotalPer Day Factor (Generated from Bulton)

DaysStatutory Max per DayTotal

Per Day FactorDays

Statutory Max per DayTotal

Initial Amount of the ACL

CutpabilityCleanup and Cooperation

History of ViolationsTotal Base liability Amount

Abilily to Pay & to Continue in BusinessOther Factors as Justice May Require

Staff Costs·

00 Step 3

~~~>z

'0 ~ Step 4~~:.Step 5Step 6

Step 7

Step 8

Step 9

Slep 10

Select ItemSelect ItemSelect ItemSelect Item

Select ItemSelect ItemSelect ItemSelect Item

Select ItemSelect ItemSelect ItemSelect Item

Economic Benefit

Minimum Liability AmountMaximum liability Amount

Final Liability Amount

Start Date of Violation=I_'1_1_161_0_9 _End Date of Violation= ,_1'_1_'5/_' 0 _

Start Date of Violation=I_"_I_'61_'0 _End Date of Violation= _'1_/_'5/_'1 _

Start Date of Viotation=I"/'61'.· ..•'.End Date of Violation= ,:::5/:::4/:::,:::2::::::::::::::::::::::::::::

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Discharger Name/lD: Richard ·Sykora' Red Ink Maid & Big Seam MineViolation Category #4 ~ ISW Annual ReportsPotential Harm Factor (Generated from Button)Per Gallon Factor (Generated from Button)GallonsSiatutory 1 Adjusted Max per Gallon ($)TotalPer Day Factor (Generated from Button)

DaysStatutory Max per DayTotal

Per Day Factor

DaysStatutory Max per DayTotal

Initial Amount of the ACLCulpabilityCleanup and CooperationHistory of Violations

Total Base Liability AmountAbility to Pay & to Continue in Business

Other Fac;tors as Justice May RequireStalf Costs·

Step 5SIep6

Step 7

Slep 8

Step 9 Minimum Liability AmountMaximum Liability Amount

Step 10 Final Liability Amount

48,000.0048,000.00

62,400.0081,120.0081,120.00

Start Date of ViOiatiOn=I_71_21_0_9 _End Date of Violation= ._71_'/_'_o _

Start Dale of ViolaUon=I_71_21_'_0 _End Dale of Violallon= ._71_'/_'_' _

Start. Date of ViOJation=17'21nEnd Date of Violation= 5/4/12

Penalty Calculation Melhodology Worksheel- Version Date: 6/24/2010Password lor Workbook Protection: enforcementfiaf!r~ir~~!J'~':'',~.~: ~.,. : ~.:__ .~.~.: :

il.Select Potential Harm for Discharge '

!i:::$~1;8t:Cha~racteristicso{~he.Discharge ~::i::::::3. 'S~JiH;tS~sceptibil!ty to <iieanup or Ab~te14. Select Deviation from Stardard .is. Click "oetermine Harm & perG~lIon/Day ..."

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a c Step 3:0.2~~~>~:u ~ Step 4~ 0.. ~

it

Step 5Step 6

Step 7

Step 8

Step 9

Step 10

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Discharger NamellD: Richard Sykora: Red Ink Maid & Big Seam Mine'Violation Category #5 • WDR Annual Fee

Potential Harm FacIO( (Generated from Button)Per Gallon Factor (Generated from Button)GallonsStatutory I Adjusted Max per Gallon ($)

TotalPer Day Factor (Generated from Button)DaysStatutory Max per DayTotalPer Day FactorDaysSlatutory Max per DayTotal

Initial Amount 01 the ACL

CulpabilityCleanup and CooperationHistory of Violations

Total Base Liability AmountAbility to Pay & to Continue in BusinessOther Factors as Justice May RequireStaff Costs·

Economic Benefit

0.3 0.3 0.3

18 18 81,000

5,400.00 2,400.00

5,400.00 2.400.00

7,020.00 1.3 3.120.00

9.126.00 1.3 4.056.009.126.00 1 4.056.00

Minimum Liability AmountMaximum Liability Amount

Final. Liability Amount

1.508

$8.2588'9,000

Start Date 01 Violation=I~~_2J_2_91_0_8 _End Date 01 Violation=_.1_2J_2_Bl_0_9 _

Start Date of ViOlatiOn=ll_2J_'_7_I'_0 _End Date of Violalionc ._'21_'61_'0 _

Start Date of VloI8tlon=12I_61_'_2 _End Date 01Violatlon= 51_41_'_2 _

Penalty Calculation Methodology Worksheet· Version Date: 6124/2010Password for Workbook Protection: enforcementfi~~t~cti~~;·· , '····1

11. ?ljlect Potential HarrJ1for Discharge. Violatio!"'s 112. Select Characteristics of the Discharge 113. Select Susceptibility to Cleanup or Abatement 114. Select Deviation from Standard. • 115: Click "Determine Ha'rm & per Gallon/Day..... '1~~::~:.~.:::.~~.~~~0.h:.~.:~~.~~~~f.~.~~~~~i.~~.:~~.~~~~~..:, ,...,~

Discharger NameJlD: Richard Sykora - Red Ink Maid & Big Seam Mine'Violation Catego #6· ISW Annual Fee

Potential Harm Factor (Generated Irom Button)Per Gallon Factor (Generated from Button)Gallons

Statutory 1Adjusted Max per Gallon ($)TotalPer Day Factor (Generated from Button)

DaysStatutory Max per DayTotal

Per Day FactorDaysStatutory Max per DayTotal

Initial Amount of the ACL

CulpabilityCleanup and CooperationHisto 01Violations

Total Base L1abillt AmountAbility to Pay & to Continue in Business

Other Factors as Justice May RequireStaff Costs'

Ste 1Step 2

Step 5Step 6

Step 7

Step 8

Step 9

Select Item Potential Harm for Dischar e ViolationsSelect Item Characteristics of the Dischar eSelect Item Susce libi\" of Cleanu or AbatementSelect Item Deviation from Re uirement

ATTACHMENT BViolation 1 - 2010 Annual Fee

$ $

0.318

',000 1,000$ $ 3,300.00

$ $ 3,300.00

'.2 $ 1.2 $ 3,960.00

1.3 $ 1.3 $ 5,148.00, $ 1 $ 5,148.00

$$

$$

2,367 $.

$2603527,000'

$ '3,572.00

Minimum Liability AmountMaximum Liability Amount

Step 10 Final L1abilit Amount

Start Date 01Violation;I_"_1_27_1_10 _End Date of Violation; _"_12_61_1_' _

Start Date of ViOlatiOn;j_1_'/_24_1_'_1 _End Date of Violation; ._5/_4_/'_2 _