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Page 2 <br />January 26, 2007 <br />Tatum <br />adobe house or alternatively, in the amotmt of the diminution in the value o1' the properly <br />subject to this suit, <br />On December 19, 2002, the Las Animas County District Court entered the <br />rindings oi' Fact, Conclusion of Law and Judgment. The Court found: "The measure of <br />damages in a cast of coal mine subsidence in Colorado is the `full amount of diminution <br />of value' as specified by the Colorado Surface Coal Mining Reclamation Act, and <br />regulations adopted pursuant to this Act. See C.R.S. 34-33-103, 1L1, 133.5, 135(6) and ? <br />Colo. Code of Regs., 4.203(2)(b)(ii}." The Court found that this special regulatory <br />measure of damages was due lu llte coal Honing operations of Basin and structural <br />damage and movement had occurred to our property resulting in damage and the <br />diminution of value to our property as a result of coal mining subsidence in the amount of <br />$622,000,00. The courC awazded us attorney and expert fees, pre and post judgment <br />utterest. <br />Basin appealed this decision to the Colorado Court of Appeals, and a decision was <br />issued on November 17, 2005, affirming the decision by the lower Court the Mandate of <br />the Appellate Court was issued on August 30, 2006. The denial of Basin's Petition for <br />Wrif of Ccrliura[i was issued on August 28, 2006. Basin lost! 3 striltzs and they are <br />out! ! ! ! <br />Basin had the opportunity to adhere to the Surface Owner Protection as identif ed <br />in the Colorado Mine Land Reclamation Board for Coal Mining, 4.20.3 (2) (a} (b). They <br />failed and refused and subsequently pursuant to Colorado Mine Land Reclamation Board <br />for Coal Mining, 4.20.3 (Z) (c), the diminution of value resulting from Basin's coal <br />mining was estfiblished on December l9, 2002 in the amount of $622,000.00 uud upheld <br />by the Colorado Court of Appeals and the Colorado Supreme Court. <br />The Golden Eagle Permit is a Federal permit. The Golden Eagle Permit C-1981- <br />013 has been addressed in correspondence between the State of Colorado and the Denver <br />Off ce of Surface Mining on the following dates: May 9, 2002, May 1, 2003, November <br />13, 2003, December 31, 2003, June 21, 2004, and August 23, 2004, and between Peak <br />Project Management, and the Denver Office of Surface Mining, on August 28, 2003. In <br />cotmnunications from the State of Colorado to Basin Resources, the State of Colorado <br />advises Basin Co submit documentation to OSM. Copies of these ate herchr attached. I <br />am aware that each of these communications, while not directly affecting the portion of <br />the bond relevant to our proparty, should have mandated that OSM review the. permit in <br />it's entirety in light of thz March, 1995 rulings and pending state compliance. Certainly <br />the December ;1, 2003 letter from David Berry to Carl Johnston concerning Northwest <br />Airshaft Closure Plan should have reminded OSNI of the subsidence issues, the IBLA <br />ruling and the new Tatum lawsuit against ]3asin, since the Northwest Airshaft Closure <br />Plan was for our property, <br />E0 3917d Wftltll WIP 6St09D86iL 0Z ~9T L00Z/9Z/I0 <br />