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ENFORCE34460
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Last modified
8/24/2016 7:44:24 PM
Creation date
11/21/2007 2:12:06 PM
Metadata
Fields
Template:
DRMS Permit Index
Permit No
C1989074
IBM Index Class Name
Enforcement
Doc Date
10/27/1995
Doc Name
RECOMMENDATION TO VACATE NOV C-95-015 RIMROCK COAL CO
From
SANDY BROWN
To
MIKE LONG
Violation No.
CV1995015
Media Type
D
Archive
No
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<br />mine went to his wife, Gloria Davis. She became the sole proprietor as documented in <br />the Affidavit of Luty Gloria Davis. In October, 1992 Rimrock Coal Company filed for <br />incorporation. For business purposes Mr. Waters explained it was necessary to <br />incorporate while coal was being extracted. There was never any distinction of the <br />incorporated status by using an Inc. or other designation in the name of Rimrock Coal <br />Company. According to Mr. Waters there were dual entities associated with the name of <br />Rimrock Coal Company, the sole proprietorship and the corporation. <br />Gloria Davis maintained ownership of the mine using Landmark Reclamation as the <br />operator. Mining operations lasted only about three months. At that point in time, <br />Rimrock asked Landmark to complete reclamation as required by the permit. <br />On May 18, 7994 Rimrock Coal Company signed an agreement with Fishers Peak Land <br />Company and Landmark Reclamation, Inc. titled Agreement for Purchase and Sale of <br />Real and Personal Propertv. Mr. Waters maintained that Rimrock Coal Company <br />retained their obligations as permittee despite provisions in the agreement that indicate <br />all permitting responsibilities became the obligation of Landmark Reclamation. <br />In summary, Mr. Waters contends there was no reason to transfer the permit because it <br />has always been held by Rimrock Coal Company, a sole proprietorship, Gloria Davis is <br />the responsible party for the permit. <br />I questioned whether dual entities, a sole proprietorship and corporation, with the same <br />name and individuals could co-exist. According to the Attorney General's Office the <br />answer is no, in some circumstances. Here it appears that formation of the corporation <br />was an extension of the sole proprietorship and that the corporation was in effect the <br />mining operation. <br />The Division was never notified of the fact that Rimrock had incorporated and that the <br />corporation was essentially controlling the mining operation. The name of the sole <br />proprietorship and the name of the corporation remained the same. In addition, the sole <br />proprietorship never requested a transfer of the permit. Under these circumstances, <br />particularly the lack of notification, the sole proprietorship remains liable under the <br />permit. <br />Another issue arises from the May 19, 1994 Agreement for Purchase and Sale of Real <br />and Personal Propertv of Rimrock Coal Company, the corporation, with Fisher Land <br />Company and Landmark Reclamation. The agreement conveyed land ownership to <br />Fisher and the permitting obligations and reclamation responsibility to Landmark. <br />Rimrock, the sole proprietorship, did not request transfer of the permit from the <br />Division and the Division was not notified of the agreement. Therefore, as stated <br />above, the sole proprietorship remains liable under the permit. <br />Based on the above discussion, I recommend that the NOV be vacated. Gloria Davis is <br />the responsible party associated with Rimrock Coal Company. As sole proprietor, she is <br />liable for all permitting and reclamation obligations. <br />
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