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., <br />Mr. Michael B. Long <br />If is also my understanding that the reason given for the delay of the permit <br />transfer approval after the application was received, was the ApplicanWiolator <br />System (AVS) clearance. It is difficuR to understand why the AVS clearance took <br />more than 9 months to complete. <br />OSM has determined that DMG acted improperly in allowing Basin Resources to <br />commence mining in 1991 for the following reasons: <br />Colorado rule 2.01.3 requires that no person shall engage in coal mining <br />activities unless that person has first obtained a valid permit. <br />Colorado Rule 2.08.6 specifies that no transfer, assignment, or sale of the <br />rights granted-under any permit shall be made without the prior written <br />approval of the Division. <br />Colorado Rule 1.04 defines "Successor in interest° as any person who <br />succeeds to rights granted under a permit, by transfer, assignment, or sale <br />of those rights. . <br />The way that a successor in interest obtains the right to mine is through the <br />permit transfer process. This involves compliance with public notice <br />requirements, ensuring that the applicant is eligible for a permit and making <br />the written finding of approval for the permit transfer. To fail to obtain that <br />prior written approval is a violation of the State program. <br />After careful review of the situation, the Albuquerque Field Office (AFO) believes <br />that Basin Resources, Inc. has, in effect, operated over 19 months without a <br />permit; the mine should never have been allowed to operate under the new <br />ownership until this approval was granted. <br />If you have any questions, please call me at (505) 766-1486. <br />Sincerely, <br />~~ , <br />Robert H.~Hagen, Director <br />Albuquerque Field Office <br />2 <br />