ENFORCE23100

• Permit No: C1981013
• IBM Index Class Name: Enforcement
• Doc Date: 10/12/2007
• Doc Name: Response to 9/10/2007 Review Letter
• From: OSM
• To: Ann Tatum
• Violation No.: CV2007001
• Media Type: D
• Archive: No

C-81-013 that was approved by the DRMS.
10. Basin Resources, Inc. is currently registered with the Colorado Secretary of State's Office
as a separate corporate entity [from Westmoreland Coal Company], has been assigned an
entity identification number, and is in good standing with that office. A certificate was
issued by the Colorado Secretary of State's Office to this effect on August 20, 2007.
11. Basin Resources, Inc. provided an insurance certificate to DRMS dated June 27, 2007
verifying that a public insurance policy was in effect for the Golden Eagle Mine; Permit
Number C-81-013. The certificate listed Westmoreland Coal Company as the insured
and included "The Golden Eagle Mine Permit # C-81-013" in the "Description of
operations/locations/vehicles/exclusions added by endorsemenUspecial provisions"
section of the certificate.
12. On August 20, 2007, the DRMS received a new certificate of liability insurance from
Basin Resources, inc. The certificate verified that the Golden Eagle Mine; Permit
Number C-81-013 is covered with an insurance policy issued by National Union Fire
Insurance Company of Pittsburgh, PA and specifically identifies Basin Resources, Inc. as
the "Insured."
I3. The complaint alleged two problems: that (I) Basin Resources, Inc. is not the valid
permittee for the Golden Eagle Mine; Permit Number C-81-013; and (2) Basin
Resources, Inc. has not provided [to the DRMS] the required liability insurance coverage.
Did Colorado show good cause for not taking action? The Federal regulation at 30 CFR
§842.1 I (b)(2) indicates that a State's action or response that is not azbitrary, capricious, or an
abuse of discretion shat] be considered "appropriate action" to cause the violation to be
corrected, or "good cause" for failure to do so. The DRMS claimed good cause on the basis that
no violation exists. The Federal regulation at 30 CFR §842.11(b)(4) defines good cause to
include "(i) under the State program, the possible violation does not exist "
The question to be answered, therefore, is whether or not the DFD's determination that no
violations exist (the DRMS' bases for claiming of good cause) was azbitrary, capricious or an
abuse of discretion. Based upon the facts and additional information available to me, I conclude
the following:
1. With respect to Violation #1, the DFD's conclusion that the DRMS has shown good
cause for taking no further action since there is no evidence to suggest that Basin
Resources, Inc. does not have a valid approval for Permit Number C-81-013 in
compliance with Colorado Rule 2.08.6 is correct.
Prior to the issuance oFTDN X07-140-116-002, TV2, Basin Resources, Inc. submitted
updated ownership and control information for Westmoreland Coa] Company (Minor
Revision No. 81) to the DRMS. The minor revision contained updated ownership and
control information for Westmoreland Coal Company including an organizational chart
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