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October Z0. 2000 Basin Resources, Inc. 3800 County Road 63.9 Trinidad, CO 81082 Golden Eagle Mine, C-81-013 Citizen complaint follow-up NOV 00-140-116-001, Termination action October 18. 2000 This Mine Site Evaluation Inspection Report (MSEIR) is intended as an administrative action to transmit a termination notice for Notice of Violation (NOV) 00-i40-116-001, violation 1 of 1. The NO V was issued to Basin Resources, Inc. (Basin) as a result of a citizen complaint follow-up inspection conducted on September 22, 2000. The inspection was required by an Interior Boazd of Land Appeals (IBLA) order dated July 26, 2000. This IBLA decision regazding IBLA case 96-91 found against a previous Office of Surface Mining (OSM), Western Regional Coordinating Center (WRCC), Regional Director's decision regarding the. final disposition of citizen complaint No. CC-93-020-008. The IBLA decision detetmined that a violation of Colorado Rule 4.20.3(2) occurred as a result of subsidence damage to the complainant's occupied residential dwelling. This MSEIIt is also intended to clarify that the subsidence damage cited in the above NOV is the subsidence damage which was alleged in the original 1993 citizen complaint noted above. This was subsidence damage to the comp]ainant's occupied residential dwelling, as determined by the above IBLA decision, which was based on 1993 through 1995 investigations conducted by OSM, the Colorado Division of Minerals and Geology (DMG), the complainant's consultants; and testimony given in a 1997 State civil action brought by the complainants and described below, Basin Resources, Inc. responded to the OSM Notice of Violation via letter dated October 4, 2000. In their letter, Basin states that the IBLA decision relied on findings made by a trial court in Trinidad, Colorado (See Tatum v. Basin Resources. Inc.. Case No. 92CV 127, Dist. Ct., Las Animas County, Colorado) in a civil action brought by the complainants against Basin. Basin states the subsidence damage violation cited in the NOV would be abated if Basin were to compensate the complainants for "...the diminution in value resulting from subsidence." as stated in the NOV. Basin states that pursuant to the above trial courtjudgement, they have provided compensation to the complainants for the full amount of diminution in value resulting from subsidence. As described in the State court decision : "Damages to the residence include the cost of past repairs and cost of future repairs, and have caused a diminution of value of the propery. Tatums have spent $14,500 attempting repairs of the property and will be required to spend additional sums to completely restore the existing damage caused by the subsidence. Plaintiffs have thus suffered a loss in the amount of $48,000."