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("Act") and Rule 1.02 of the Regulations of the Colorado Mined Land Reclamation Board <br />for Coal Mining, 2 CCR 407-2 et seq. ("Coal Regulations"). <br />This matter concerns one of three challenges to Division actions arising from subsidence <br />related to mining operations. The other two matters (a Notice of Violation ("NOV") and <br />civil penalties) are addressed in sepazate Boazd orders. In response to a citizen complaint, <br />the United States Department of the Interior, Office of Surface Mining ("OSM") issued a <br />"Ten Day Notice"` to the Division on February 6, 2007 informing the Division that OSM <br />believed Basin had violated State law by failing to promptly repair, rehabilitate, replace, or <br />compensate the owner of a damaged occupied residential dwelling in the full amount of the <br />diminution of value? <br />4. Responding to the Ten Day Notice, the Division issued a NOV to Basin dated February 15, <br />2007. The NOV alleged a violation of Section 34-33-121(2)(a)(II)(B) of the Act and Rule <br />4.20.3(2)(b)(ii) of the Coal Regulations. Both the statute and the regulation set forth the <br />obligations of an underground coal mine operator if material damage to occupied <br />residential dwellings results from subsidence caused by underground coal mining <br />operations. In such an event, the operator must "promptly repair the damage by <br />rehabilitating, restoring, or replacing the damaged occupied residential dwelling and <br />related structures ...; or ... [c]ompensate the owner in the full amount of the diminution in <br />value resulting from the subsidence...." Section 34-33-121(2)(a)(II)(B), C.R.S.; Coal <br />Regulations Rule 4.20.3(2)(b)(ii). At about the same time, the Division initiated the bond <br />~ Under a cooperative agreement with OSM, the Division has regulatory authority over coal mining in Colorado <br />provided Colorado's statutes and regulations comply with federal standards. See State-Federal Cooperative <br />Agreement, 30 C.F.R. Part 906.30. If a state fails to bring its regulations into compliance with federal guidelines, <br />OSM may resume control over all or a portion of a state program. <br />ZIn Jim and Ann Tatum v. Basin Resources, Inc., O1CV26, Las Animas County District Court awarded [he Tatums <br />$622,000.00 in damages measured as the value of their property with subsidence and the value of their property <br />Basin Bond Appeal, C-1981-013 <br />