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The regulations establish requirements and criteria for the regulatory authority to approve an application for permit transfer. However, the regulations do not prescribe conditions under which a permit transfer must occw, only how the regulatory authority must respond once application is filed". (a copy of the United States Department of the Interior Office of Surface Mining (OSM) October 12, 2007 letter is attached and incorporated for all purposes as Exhibit G) See Exhibit G . A permit transfer by definition must occw when ownership or other effective control is changed. 8. The enclosed "Notice to Regulatory Agencies of Closing" (a copy of the "Notice" is attached hereto and incorporated for all purposes, and marked as Exhibit Fl) See Exhibit H. The "Notice", is signed by Paul W. Durham as Secretary for Westmoreland Coal Company and the same Paul W. Dwham as Assistant Secretary for Basin Resowces, Tnc, and states " .... post closing details associated with the change of control of Basin, such change of control being effective as of the date indicated above". The date reflected in the Notice is April 30, 2001 when the change of control became effective. Again, the obvious azgument is that Westmoreland Coal Company acknowledged that a change of control has occwred, ergo a transfer is required. COIVCLUSIOIV: OSM's finding for violation number one (1) (see Exhibit G is misplaced aud, if left standing, would render 30CFR 774.17 irrelevant along with any and all other regulations that place a mandatory standard on a perrnittee to obtain a Regulatory Authority approval prior to that pernvttee taking unilateral actions -such as, but not limited, to mining without a permit. OSM apparently believes that 30 CFR 774.17, and the Colorado Program counterpart, is only applicable if a permittee unilaterally decides to submit an application for a permit transfer. If the permittee decides to forgo this procedure the regulation is of no effect. This is ludicrous. The regulation begins by stating "No transfer, assignment, or sale of rights granted under a permit shall be made without the prior written approval of the regulatory authority." The remainder of the regulation outlines the procedure the permittee and regulatory authority must follow to request and ultimately obtain that approval. . Tn the instant case, the permittee, Basin Resources, sold the rights gratrted within their permit to VJestrnoreland Coal without first obtaining Colorado's written approval. As such, the sale of the permit tights is invalid and in violation of both the Colorado Program and Federal regulations. To be in compliance with the program, Colorado should have issued a Notice of Violation to Basin for its failure to obtain the written approval. Page 4 of 5