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January 26, 2007 <br />Page 3 <br />Tatum <br />The June, ZOO4 PCrllllt RCLLCWilI reflects that OSM was notified of this <br />requested permit renewal. The State queried AVS on l~ebruary 3, 2004. The information <br />obtained would show Westmoreland as the parent con,pa» y of Raain Resnurces, 'lnc. <br />Paragraph XV Subsidence Control page 17 of the Permit Renewal recites the <br />same provisions wherein the Tarums were awarded their judgment, which was not paid as <br />of 2004. Under Grants, Conditions and Agreements, ©12 states: "This permit may be <br />revoked or suspended for non-compliance with the Act or lawftIl rules or regulations <br />promulgated by the Boazd." The Golden Eagle Permit C-1981-013 was continually <br />bei'ore OSM from the daft of our Judgment to the present time. Action ehould have been <br />taken by OSM to ensure that 817.121 b paragraph (5} was enacted by Colorado. For <br />seven years, Colorado has been without the protection intended and provided by Code of <br />Federal Regtlations Title 30 Mineral Resources Chapter VII section 817.121 b paragraph <br />(5). <br />As a Federal Permit, OSM knows that Westmoreland Coal purchased Basin <br />Resources, Inc. in 2001. As I understand it under the cooperative agreement, the State of <br />Colorado may issue Permits but bonding must include the OSM and OSM must be <br />advised of all state requirements/regulations pertaining to bonding requirements. <br />Westmoreland Coal by acknowledgment, and the State of Colorado and OSM concur that <br />Westmoreland Coal is the responsible entity and the financially obligated entity for the <br />C.nlden Eagle Permit C-1981-013. In a January 11, 2001 letter from Kent Gorham, State <br />of Colorado, to Carl Johnston, OSM, Mr. Gorham states: "This revision updates the <br />ownership, financial and compliance information for the new owners of Basin Resources, <br />Inc. Westmoreland Coal Company. The pennittee of the Golden Eagle mine will remain <br />Basin Resources, Tnc:' <br />We have objected in writing to the State of Colorado on October 19, 2006 and <br />aSain on November 27, 2006 to the release of any Golden Eagle bonds. Copies of these <br />letters are enclosed. The State of Colorado responded to our concerns on November 3, <br />2006 and December lI, 2006. Copies are enclosed. Our objections should have been <br />included in any and all material relevant to the release of any portions of the Golden <br />Eagle permit provided to OSM. Again, our objections and concerns were then off record <br />and our judgment made known. Aren't there State and/or Federal requirements wherein <br />coal companies MUST advise the State and/or the Federal government when a coal <br />c~uipaciy is found liable for dmnages covered under the State iuid/or Fcdornl rules? Eoth <br />OSM and the State of Colorado know the history of Tatum/Basin!! <br />In March 1995, the Code of Federal Regulations Title 30 Mineral Resources <br />Chapter VII section 817.121 b paragraph (5): Adjustment of bond amount fur <br />subsidence damage was adopted. The State of Colorado was required to implement this <br />new law within a reasonable period of time. These regulations exist to ensure timely <br />compliance and compensation for subsidence damage and as a safeguard against the coal <br />40 39Cd Wf11Cl WIt 6SL09b86tL 0Z~9t L00Z/9Z/T0 <br />