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Basin Resources, Inc. submitted Minor Permit Revision number 8I to the Colorado Division of Reclamation, Mining and Safety on July 27, 2007. (a copy of this permit revision is attached hereto aad incorporated for all purposes, and marked as Exhibit E) See Exhibit E. It is imperative to note that the oflicerslshareholders far Westmoreland Coal Company, Beck, R.II., Durham, T.G., Iregley, M.W., Paprzycki, 1{.A., and R.I1. Wiegley, overlap, with these same o~"icers contzolling Basin. 5 As reflected in the enclosed copies of bank statements for Basin, Westmoreland Coal Company is the entity making wire transfers into the Basin account.(a copy bf the bank statements are attached hereto and incorporated for all purposes, and marked as Exhibit ~ See Exhibit F. Thus Westmoreland Coa! Company is supplying and/or contributing the capital necessary for Basin to opezate, 6. CFR 30 §701.5 defines Transfer, assignment or sale of permit rights "Means a change in ownership or other effective control over the right to conduct surface coal mining operations under a permit issued by the regulatory authority." Besides the obvious change in ownership in this instance, the KEY words in this definition "other effective control". The existing rules, under 30 CFR § 774.17, 'Transfer, assignment, or sale of permit rights requires the successor in interest (Westmoreland) assume the liability and reclamation responsibilities, and comply with the Act. The obvious argument is that Transfer, assignment or sale of permit rights means a change in ownership or other effeclave control. Successor in interest means any person who succeeds to rights granted uuder a permit by transfer, assignment or sale of those rights. Therefore, Westmoreland cannot become the successor in interest unless a transfer, assignment or sale of permit rights has occurred, and that equates to change in ownership or other effective control. The new landowner, Westmoreland clearly has effective control over the right to conduct surface mining and reclamation operations; ergo a transfer is required. 7. CFR 30 §701.5 defines Successor in interest "Means any person who succeeds to rights granted under a permit by transfer, assignment, or sale of those rights. The C7nited States Department of the Interior Office of Surface Mining (OSM) in their October 12, 2007 letter, page 5, paragraph 2, states "...Westmoreland Coal Connpany is the successor in interest" OSM contiaues this analyses, page 5, paragraph 3, "independent of this determ+nation, nothing in the Federal regulations or Colorado's rules requires the holder of a permit to apply for a permit transfer. Specifically, 30 CFR 774.17 states that "[N]o transfer, assignment, or sale of rights granted by permit shall be made without the prioz written approval of the regulatory authority. Page 3 of 5