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J 1 Ili9 'T94'r l9 !~1 A?"PORNIEY A7 LAW March 16, 2007 Mr. llave Barry Division of Reclamation, Mining & Safety 1313 Shcnnau Street, Room 215 Denver, Colorado 80203 RE: Basin Resources -Westmoreland -eal Mr. Barry: 129 North Commercial Streot Trinidad, Colorado 87082 wnldl wir You have paperwork whereby Westmoreland Coal totally Owns and controls Basin Resources, Inc. It appears that now, after several years, and after being found liable by the IBLA, The T~as Animas 17istriet Court of Colorado, Colorado Court of Appeals, and, the Colorado Supreme Court that Westmoreland is now trying to disclaim liability for Basin Resources. Please refer to the enclosed gption B in the purchase agreement between Westmoreland and Montana Power. Westmoreland received a multi million dollar credit on the purchase and in turn assumed all of Basin's liabilities. The bond currently in place for the Crolden Eagle mine is grossly insufficient to comply with the law and protect the public even excluding the Tatum judgment which will approach 1.5 million including interest, attorney's fees, etc. We are waiting for your decision per the increase in the bond per 30 CFR 817.121 (c) (S), As I understand this you aze to issue the decision pursuant to a directive from OSM and in accordance with the State regulations and rules, Mr, 1''ulton advised y011 On March 8, 2007 that the bond was to be increased in the amount of the state court .judgment in order to be consistent with the Federal regulations. Your March 2, 20071etter to Ron Thompson gave Flasin until today to request an informal conference. Ann advises that no such request has been made by $asin and that Basin's attorneys related to her that they would be requesting a formal hearing. i za 3~dd Facsimile 303 832 8106 65i09b86tL 55~bL L00Z/9i/E0 Dwision of Reclamation, Mining and Safely