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Mr. Steven G. Renner <br />3 <br />In light of the direction supplied above, AFO will give an <br />additional 10 days for MLRD to review the regulations and program. <br />AFO requires a reply from MLRD on three of four of the subject TDL <br />within 10 days from receipt of this letter. <br />4 of 4 - AFO understands the MLRD response to state that the <br />operator has adequate insurance coverage and that MLRD wishes <br />clarification on why this issue has risen in the field when it is <br />designated as an element of the 1991 Annual Report Workplan. The <br />inspection revealed that the operator is self-insured with an <br />umbrella policy that becomes effective after the self-insurance <br />limits are exceeded. The MLRD regulations at 2.03.9(4) allow for <br />self-insurance; however, the Federal regulations at 30 CFR (Code of <br />Federal Regulations) 800.60(d), require that the State program have <br />the State self-insurance requirements approved as part of the <br />regulatory program and the requirements of 30 CFR Part 800. The <br />Colorado regulatory program has not yet submitted the State self- <br />insurance requirements for approval as part of its program. AFO <br />finds the MLRD response that the operator has adequate insurance <br />coverage to be inappropriate because that coverage is based on <br />State self-insurance requirements that were not submitted for OSM <br />approval as a part of the MLRD program. <br />AFO agrees that this issue has been identified as an element of the <br />1991 Workplan. This identification of an issue for a Workplan does <br />not preclude an enforcement action even if that violation will <br />eventually be addressed by the results of that Workplan. In <br />essence, the violation exists in the field and must be cited. <br />Acknowledgement of an issue for a Workplan does not alleviate the <br />need to take action if field conditions indicate that a violation <br />of the regulations exist. <br />If you disagree with the above findings, you may request an informal <br />review in accordance with 30 CFR 842.11(b)(1)(iii)(A). The request may <br />be filed with the AFO or with the Deputy Director, OSM, 1951 <br />Constitution Avenue, N.W., Washington, DC, 20240. Your request must be <br />received within 5 days of receipt of this letter. A Federal inspection <br />may be conducted after the 5-day appeal time has elapsed, unless an <br />informal review is requested. <br />Sincerely, <br />~~- <br />Robert H. Hagen, Director <br />~~ as Albuquerque Field Office <br />