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<br />ANN TATUM <br />129 NORTH COMMERCIAL STREET <br />TRINIDAD, COLORADO 81082 <br />Phone: 719 846-0149 Fax: 719 846-0159 <br />%d3 hZ~TT LOOZ/LZ/ZO <br />RECEIVED <br />FEB 2 7 2007 <br />Division of Reclamation, <br />Mining and Safety <br />February 27, 2007 <br />Mr. Dave Berry <br />Facsimile 303 832 8106 <br />Division of Reclamation, Mining & Safety <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />RE: Tatum v BasinlWestmoreland <br />732 Letter related to 30 CFR 817.121 (c) (5) <br />Mr. Berry: <br />Pursuant to your letter dated February 15, 2007 to Jim Fulton and Federal <br />regulation 30 CFR 817.121 (c) (5), Basin/Westmoreland is required to IMMEDIATELY <br />post an additional bond equal to the diminution of value due to subsidence as reflected in <br />the December 10, 2002 judgment, of which you have a copy, for $622,000.00 PLU$ pre <br />amd post judgment interest at the rate of 8% from March 22, 2001 to the present date. <br />30 CFR 817.121 (c) (S) requires that the bond must be posted within 90 days or <br />the regulatory authority may extend the 90 day grace period up to a maximum of one <br />year. Both of the so referenced time frames, 90 days or up to one year have been <br />exceeded and therefore 1MMEDIATE bond increase MUST occur. No compensation of <br />our confirmed subsidence damage has been received as of this date. Absent receipt of all <br />compensation awarded to us in the December 10, 2002 judgment this Federal regulation <br />is applicable and MUST be enforced. <br />As the permit at issue is a Federal lands mining permit, C-1981-013, the Office of <br />Surface Mining must approve the bond. Please be advised that the surety writing such a <br />bond MUST be placed on notice that the bond is in response to an existing Judgment <br />issued by the Las Animas County Court on December 19, 2002 and affirmed by the <br />Colorado Court of Appeals on November 17, 2005. 13asin/Westmoreland filed a Petifion <br />for Writ of Certiorari which was denied on August 28, 2006 by the Colorado Supreme <br />Court. <br />Your letter dated February 15, 2007 to Mr. Thompson places <br />Basin/Westmoreland on notice that a bond increase "maybe required." There is no "may <br />be" as confirmed this morning by Mr, Fulton with the Office of Surface Mining. Be <br />Z00 ~ <br />