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L'mud States Dcpanmcnt of Interior October 4, '_000 Pace Basin has, pursuant to the trial court judgment, provided precisely that compensation to the Tatums. A copy of the Satisfaction of Judgment, signed by the Tatums, is attached for your review, as is the Judgment entered by District Judge Manzanares in that case. In reaching Itis decision, Judge Manzanares specifically found that the fair market value of the Tatum residence had been diminished by subsidence, and ordered Basin to pay the Tatums the amount of that diminution in value. Basin has made that payment. To comply with the Colorado regulatory program, a mine operator must "[c]ompensate the owner of the damage occupied residential dwelling ... [he Full amount of the diminution in value resulting from the subsidence." 2 Colo. Code Reg. 407-2 ~ 4.20.3(2j(bj(ii). Judge Manzanares determined that amount, and Basin paid that amount to the Tatums. Basin is therefore in full compliance wi[h the requirements of the Culorado program, and the NOV must be vacated. The IBLA deferred to Judge Manzanares finding that subsidence caused damage to the Tatum residence, even though experts working for DMG and OSM believed otherwise. Basin expects that equal deference will be given to Judge Manzanares' determination of the diminution in value to the Tatum residence. Because this matter has been fully and finally resolved by the civil action, Basin would like to avoid the expense of preparing an appeal of this NOV, and therefore requests that the NOV be vacated as promptly as possible. Basin further requests that OSM waive the use of the civil penalty formula found at 30 CFR Part 845. Because no violation exists, the imposition of a penalty would be demonstrably unjust. Sincerely, ~r `~ ~/~ Robert Montgomery (r Basin Resources, Inc. cc: Scot \V. Anderson. Davis Graham & Stubbs LLP _~,,,