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~.• Mr. Thomas Ehmett -2- April 24, 1995 Office of Surface Mining Reclamation and Enforcement DMG finds this latest revised certificate of insurance to be in compliance with Rule 2.03.9 for the following reasons: 1. The policy as written covers operations at the Rimrock Coal Mine (Colorado Permit No. C-89-074). The insured is Landmark Reclamation, Inc., the operator for the Rimrock Mine. Rimrock Coal Company, the "applicant" (now the "permittee" since the issuance of the permit), is included on the policy as an "additional insured " This meets the require- ment of Rule 2.03.9(1) that the "applicant has a public liability insurance policy in force..." Neither Rule 2.03.9 nor 30 CFR 800.60 requires that the applicant be the sole insured. 2. The Division's verification of coverage in several telephone conversations with the insurance agent, Lockton Silversmith, during the last few weeks, confirms that this policy covers Rimrock Coal Company for operations conducted at the Rimrock Coal Mine. Landmark Reclamation is the sole operator for the Rimrock Coal Company at Rimrock Mine. Any claims made against the policy for occurrences associated with the Rimrock Mine would be paid out by this revised polity. Under this policy, both Rimrock Coal Company and Landmark Reclamation, Inc. have equal standing, and both entities would be defended by this policy. This policy covers both the permittee and the operator as long as Landmark Reclamation remains the operator. At such a time that Landmark departs as operator, at that time a new policy would need to be issued solely to Rimrock Coal Company. 3. The current policy exceeds the minimum insurance coverage amounts required by Rule 2.03.9(1) of $300,000.00 per occurrence and $500,000.00 aggregate. The policy covers per occurrence claims, with limits of $1,000,000.00 per occurrence and $2,000,000.00 aggregate for personal injury claims and property damage claims. The agent co~rmed that a policy written solely to Rimrock Coal Company, without Landmark Reclamation included on the policy, would not be able to be written as an "umbrella" policy, nor would such a policy be written in excess of the minimum limits required by Rule 2.03.9(1). 4. The current policy document indicates that this policy is in force until July 3, 1995, which satisfies the requirement of Rule 2.03.9(2). 5. The "cancellation" wording on the certificate is in compliance with Rule 2.03.9(3). The Division does not find the insurance policy for the Rimrock Mine out of compliance with Rule 2.03.9; therefore, we do not consider enforcement action warranted. Please call me if you have additional questions.