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7uly 19, 2007 <br />Page 2 <br />painfully aware, most mining bonds are woefully inadequate to cover the full cast of <br />rcquixed reclamation should the pemvttee olnim bankruptcy. And aren't the statements <br />of I3asin's legal representative tantamount to claiming bankruptcy? <br />Fatally, the coal regulations require that the applicant submit and the applicant <br />maintain a liability insurance certificate throughout the life of the permit. Westmoreland <br />submitted such a certificate in its name -not Basin's. How can the Division accept such <br />a double standard? By law, Basin has not met its obligations to secure, in its' name, the <br />required policy. Why has there nvl been att cufurc:euteut aCtiou to requu~c camgliancc. <br />What if there was an injury or death on the property. Westmoreland claims no <br />responsibility for the mine. Do you think the current ,policy is worklx thP. paper it is <br />written on? <br />In April, 2001, Westmoreland purchased Basin Resources, with permit C-81-013; <br />Golden Eagle Mine, specifically identified in the sale. As such, all rights contained <br />within the permits previously held by Basin were sold to Westmoreland. Not only did <br />Westmoreland become the owner and controller of the permit, as has been verified <br />lhruuglt the AVS systcnm, but they also bccamc the sueecssor in interest to the right:: <br />granted by that permit. Why, therefore, did the Division fail to approve an otTicial pernut <br />transfer as required by law? <br />As you know, damage associated with mine subsidence can occur again. and <br />again. It is not a one shot deal. That is why the regulations specifically address the fact <br />that the permittee is responsible for damages even if the performance bond is released by <br />the regulatory authority. We have experienced damage from mine subsidence tuure that <br />once. Who will we taro to in the fu#ure for compensation under the coal law? <br />The Division is now aware of the subsidence liabilities associated with the Golden <br />Eagle Mine. You are also now aware of the inappropriate liability insurance certificate <br />on file for the pernmit. You have also been apprised, by Basin/Westmoreland council, that <br />Basin allegedly has neither assets nor revenue and Westmoreland claims no responsibility <br />For debts of Basin. What more does the Division need to finally require Westmoreland to <br />take responsibility under tlmis permit as required by law'? <br />It is imperative that the Division commence immediate action to require a <br />trunsf®r of permit C-81-013 from Basin to Westmoreland retroactive to the date nf sale- <br />The bond needs to be increased to address the likely occurrence of future damage due to <br />smthsidence. The liability insurance needs to comport with the "permittee" to ensure <br />adequate coverage. I cannot stress enough the urgency of this matter. To ignoxe Basin's <br />latest utterances of their inability to perform per the Act, State, and Federal requirements <br />E0 39tld Wllltll WIP 65t09486tL tt:tt L09Z/6tlL0 <br />