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Mine; Permit Number C-81-013 aze of record. Finally, the DRMS stated that although it <br />understood that Basin Resources, Inc. is owned by Westmoreland Coal Company, it was not <br />aware of any evidence to indicate that "the rights granted under" the Golden Eagle Mine; Permit <br />Number C-81-013 reside with, or aze exercised by any entity other than Basin Resources, Inc. <br />Therefore, no legal or factual basis exists to assert that Basin Resources, Inc. is in violation of <br />Colorado Rule 2.08.6. On this basis, the DRMS asserted that it had shown good cause for <br />declining to issue a notice of violation to Basin Resources, Inc. The DRMS attached to its <br />response a copy of the August 20, 2007 Certificate from the Colorado Secretary of State's Office <br />verifying that Basin Resources, Inc. is a corporation in good standing. <br />In response to Violation #2, the DRMS stated that Basin Resources, Inc. had previously provided <br />it with an insurance certificate dated June 27, 2007 verifying that a public liability insurance <br />policy was in force for the Golden Eagle Mine; Permit Number C-81-013. This certificate listed <br />Westmoreland Coal Company as the "Insured" and included "The Golden Eagle Mine Permit # <br />C-81-023" in the "Description ofoperations/locations/vehicles/exclusions added by <br />endorsement/special provisions" section of the certificate. The DRMS further stated that it <br />accepted this certificate as evidence of compliance with the purpose and intent of Rule 2.03.9. <br />On August 20, 2007, the DRMS received a new certificate ofliability insurance from Basin <br />Resources, Inc. verifying that the Golden Eagle Mine; Pemrit Number C-81-013 is covered with <br />an insurance policy issued by National Union Fire Insurance Company of Pittsburgh and <br />specifically identifies Basin Resources, Inc. as the "Insured." Based on this information, the <br />DRMS disagreed that any violation existed and asserted that it had shown good cause to decline <br />issuance of a notice of violation to Basin Resources, Inc. The DRMS attached to its response a <br />copy of the August 20, 2007 Certificate of Liability Insurance for Basin Resources, Inc. <br />Field Office Determination: By letter dated September 4, 2007, the DFD informed the DRMS <br />that its response to the TDN was not arbitrary, capricious or an abuse of discretion under the <br />approved state program. Specifically, the DFD found that the DRMS had shown good cause for <br />taking no further action regazding the two violations alleged in the TDN. Accordingly, the DFD <br />concluded that the DRMS had shown that Basin Resources, Inc. is in compliance with Colorado <br />Rules 2.08.6 and 2.03.9, and that the DRMS's permitting actions with regazd to those rules were <br />not arbitrary, capricious or an abuse of discretion under the approved state program. <br />Request for Informal Review: Following the DFD decision letter on September 10, 2007, you <br />requested informal review of the DFD's decision. Wit1r respect to Violation #1, your request <br />queried how the DRMS and OSM can allow Pemut Number C-81-013 to be issued in the name <br />of Basin Resources, Inc. You also alleged that both OSM and the DRMS have failed to enforce <br />the law and have exercised personal discretion when considering enforcement actions under <br />SMCRA: Lastly, you stated that Westmoreland Coal Company is the successor in interest; a <br />change of ownership has occun•ed; Westmoreland Coal Company owns 100% of Basin <br />Resources, Inc.; and Westmoreland Coal Company controls Basin Resources, Inc. You conclude <br />by asking what more needs to be provided to the DRMS to mandate a change in the named <br />pemuttee of the Golden Eagle Mine. <br />As regards Violation #2, your request alleged that both the State of Colorado and OSM allowed <br />