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ENFORCE23100
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Entry Properties
Last modified
8/24/2016 7:32:33 PM
Creation date
11/21/2007 10:20:50 AM
Metadata
Fields
Template:
DRMS Permit Index
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
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and a list of the current Directors and Officers for the Golden Eagle Mine; Permit <br />Number C-81-013, as well as the dates on which they assumed their respective positions. <br />The DRMS deemed Minor Revision No. 81 to be complete be on August 6, 2007 and <br />subsequently approved it on August 15, 2007. <br />The DFD's September 4, 2007 response to the DRMS states that "OSM has reviewed the <br />[5-yeaz term] permit approval documents for Permit No. C-81-013 and completed an <br />Applicant Violator System (AVS) query." That review determined that Basin Resources, <br />Inc. has wnsistently and continually been identified.as the applicant and permittee of <br />record for the Golden Eagle Mine both prior to and after the change in ownership and <br />control that became effective on April 30, 2001. In other words, Basin Resources, Inc. <br />was the valid permittee of record prior to its sale to Westmoreland Coal Company and it <br />remained the valid pemuttee of record thereafter. The sale of Basin Resources, Inc. did <br />not require the DRMS to make a new decision regarding the permit itself. This was a <br />situation where a subsidiary company (Basin Resources, Inc.) was sold from one parent <br />company (Entech, Inc.) to another (Westmoreland Coal Company) where the subsidiary <br />company's previous status as the valid pemilttee did not change. This is distinguishable <br />from a situation where the new owner is transferring, assigning or selling its operations, <br />including the permit, to another subsidiary company. <br />You aze correct that Westmoreland Coal Company is the successor in interest. However; <br />Colorado Rule 2.08.6(5) requires a new or revised permit application only when any <br />successor in interest seeks to change the conditions of mining or reclamation operations, <br />or any of the terms or conditions of the original permit. In this case, Westmoreland Coal <br />Company did not seek to change the conditions of mining or reclamation operations or <br />any of the terms or conditions of the original permit held by Basin Resources, Inc. It <br />merely purchased apre-existing subsidiary permittee and changed the Duectors/Officers <br />as a result of that purchase. Hence, an application for a new permit in the name of <br />Westmoreland Coal Company for the Golden Eagle Mine; Permit Number C-81-013, in <br />lieu of Basin Resources, Inc. was not necessary or required under Colorado's rules. <br />Accordingly, Basin Resources, Inc. is the valid petmittee for the Golden Eagle Mine; <br />Pernilt Number C-81-013 in compliance with Colorado Rule 2.08.6 and no violation <br />occurred. <br />Independent of this determination, nothing in the Federal regulations or Colorado's rules <br />requires the holder of a permit to apply for a permit transfer. Specifically, 30 CFR <br />774.17 states that "[Njo transfer, assignment, or sale of rights granted by a permit shall be <br />made without the prior written approval of the regulatory authority." The regulations <br />establish requirements and criteria for the regulatory authority to approve an application <br />for permit transfer. However, the regulations do not prescribe conditions under which a <br />permit transfer must occur, only how the regulatory authority must respond once an <br />application is filed. Colorado Rule 2.08.6 essentially mirrors the text of and is no less <br />effective than 30 CFR 774.17. Thus, while we find above that Basin Resources, Inc. <br />remains the valid permittee for the Golden Eagle Mine; Permit Number C-81-013, the <br />absence of an application for a permit transfer does not equate to a violation of the State's <br />
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