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- r- ~ ~ ~ TECHNICAL ANALYSIS Mine: Rimrock Coal Company Project Number: CO-89-074, Rimrock Coal Mine Short Title: Public Liability Insurance Work Request Number: Request from AFO RE: TDN X-95-020-352-001, Dated April 27, 1995. A. Review Criteria: Colorado State program, and 30 CFR 778.18 and 800.60, and SMCRA Section 507(f). B. Materials Reviewed: Insurance Certificate dated 4/28/95 for Policy No. IMP 30104547000 with a policy term that runs from 7/4/94 to 7/4/95. _ ,,. C. Technical Evaluation: The permittee for the Rimrock Coal Mine is Rimrock Coal Company, a single proprietor. The permittee has contracted with Landmark Coal as operator on site. The subject insurance policy covers both businesses. On its face, the certificate of insurance represents insurance coverage for Rimrock Coal that is in compliance with the Colorado regulations on insurance. However, during this review, insurance company staff indicated that Rimrock Coal Company is dissolved and no longer exists as a business. Therefore, they said their underwriter agreed to add Rimrock Coal Company as an insured under the policy because a "company that is a non-entity would not pose any risk to the insurance company." The insurance company indicated that they be~.xeve that since Landmark is on site doing the mining/reclamation Landmark would be responsible for public liability. I explained to the insurance company that as long as Rimrock Coal Company holds the mining permit, Rimrock is liable and responsible for claims filed for property damage and bodily injury suffered by members of the public due to the mining operations under the permit. Landmark Coal has insurance because this is a condition in the "Contract Mining Agreement" between Rimrock Coal and Landmark where according to the insurance company, Landmark is required to carry liability insurance and to indemnify Rimrock for damages it may suffer as a result of activities of Landmark. Therefore, the public is being protected by the policy that is insuring both Rimrock and Landmark. The insurance company also indicated that the policy has an per-site aggregate endorsement which means that each location is covered for the aggregate amount of $2 million individually. This was a concern to this reviewer because this insurance policy covers multiple sites being operated by Landmark.