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ompany was included as an insured on the general liability <br />and automobile liability policies issued to Landmark <br />Reclamation, however, the coverage provided would only be <br />available for any claims which were directly connected with <br />the operations of Landmark Reclamation. In other words, if <br />the claim was not directly tied to the actions of Landmark <br />Reclamation it would not be honored. This arrangement does <br />not meet the requirements of Colorado Rule 2.03.9 in that Rim <br />Rock Coal Company does not have the liability coverage <br />specified in the rules. <br />Janet Binns, DMG inspector, was informed of the problems with <br />the insurance ( April 7 and again on April 11) and allowed <br />until April 14, 1995 to correct the problem or if not <br />corrected by that date a Ten-Day Notice (TDN) would be issued. <br />On April 14, 1995 at 04:30 PM a fax of the insurance <br />certificate of liability was received at AFO. This document <br />was a copy of one which had been reviewed previously and DMG <br />had been informed, after the review, that it did not provide <br />coverage sufficient to meet the requirements of the <br />regulations. AFO records also indicate that DMG had been <br />provided notice on January 23, 1995 that the insurance at the <br />Rimrock mine was deficient. A TDN is being issued to correct <br />the deficiency with the liability insurance. <br />OWNERSHIP AND CONTROL: A check of the Applicant Violator <br />System (AVS) on March 17, 1995 prompted a system <br />recommendation of "deny" for the issuance of further permits. <br />This was due to a connection with Richard Randall who has <br />outstanding civil penalties in Oklahoma. Mr. Randall is tied <br />to Rim Rock Coal Company as an operator using the company name <br />of Landmark Reclamation, which is a trade name for Nurseries <br />Inc. Nurseries Inc. is a wholly owned subsidiary of Randall & <br />Blake. Richard Randall is an 89% owner of Randall & Blake, <br />Inc. Randall & Blake is the company with the outstanding <br />civil penalties in Oklahoma. It appears that during the time <br />of the last permit revision the AVS system recommendation was <br />"issue". This appears to have been a problem with the system <br />since any outstanding violations should automatically trigger <br />a "deny" recommendation. Even those violations which are <br />under appeal or are being settled should at the minimum <br />trigger a "conditional issue". Included with this report is a <br />copy of a letter which is prescribed under OSM Directive INE- <br />34. The letter, which has been sent to DMG, informs DMG to <br />correct the situation within 30 days or a Ten-Day Notice will <br />be issued. <br />BOND: The surety bond is carried by American Casualty. The <br />bond number is 124169933 and is in the amount of $31,000.00. <br />4 <br />