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was filed with the State of Colorado, the old bond for 55,000.00 was to be released, as it
<br />was no longer needed. At this point (February 13, 1976), this bond is still in effect. In
<br />reconstructing this situation, it looks as if Bond No. 400 DP 5818 was never filed by The
<br />Corley Company to replace No. 400 BB 3347" (Exhibits 61 and B2). The Division has
<br />been unable to locate a copy of Bond No. 400 DP 5818 in our records.
<br />7. On May 1 , 1973, the Corley Company (as lessor) signed a lease agreement with Harry
<br />Weckerling dba The Canon Coal Company (as lessee) for the mining of coal owned by The
<br />Corley Company in Sections 19, 20, 30 and 31 of T20S, R69W and in Sections 23, 24,
<br />25, and 26 of T20S, R70W. On June 1, 1973, The Corley Company (as lessee) trans-
<br />ferred its May 1 , 1970 lease with Chertlkee and Pittsburg Coal and Mining (as lessor) to
<br />Canon Coal Company (the new lessee) for lands in Section 31, T19S, R69W; Sections 6,
<br />7, and 18, T20S, R69W; Section 35, T19S, R70W; and Sections 1, 11, 12, 13, and 14,
<br />T20S, R70W (Exhibit C).
<br />8. On June 1, 1973, the Open Cut Mined Land Reclamation Board held a meeting at which
<br />Mr. Weckerling stated that he was "the new operator of the Corley Strip Mine, having
<br />taken over completely from the Coneys." On June 26, 1973, Mr. Weckerling filed his
<br />application for the "Corley S & A (Strip and Auger) Mine" in Section 1, T20S, R70W for an
<br />area of 10 acres. On July 16, 1973, Walt Ahern, Jr. of Tolley Insurance Agency, Inc.
<br />wrote to Ms. Skaggs at the St. Paul Companies, stating "per our telephone conversation
<br />the other day, please issue the endorsement changing the name of Bond No. 400 DP 5818
<br />from The Corley Company, Inc. to Canon Coal Corporation." On July 17, 1973,
<br />Ms. Nancy Collins, Attorney-in-Fact for.the St. Paul Companies, executed a "Name Change
<br />Endorsement or Rider" form, issued to The Corley Company, Inc., for Bond
<br />No. 400 DP 5818, changing the "Insured" from The Corley Company, Inc. to Canon Coal
<br />Corporation. This name change form was submitted to the Division on August 8, 1973,
<br />although Bond No. 400 DP 5818 apparently never was.
<br />9. On August 7, 1973, the Division received a letter from Mr. Weckerling stating that he
<br />wished.to mine "six to seven acres" in the Corley S&A Mine, and "approximately three
<br />acres in the area immediately west of the 'Black Diamond' portal." On September 5,
<br />1973, the Executive Director signed two separate Land Stabilization and Reclamation
<br />Agreements with Canon Coal Corporation. One of these was for "The Corley S & A Mine"
<br />in Sections 1 and 12, T20S, R70W, with the bond amount set at 515,000.00. The other
<br />was for "The Black Diamond Strip Mine" in Section 24, T20S, R70W, with the bond
<br />amount set also at 515,000.00 (Exhibit DI. Paragraph Seven of each of these agreements
<br />states that "Canon will restore all areas opened since 1969 by The Corley Company, as
<br />provided in their agreement with The Corley Company, and The Corley Company bond will
<br />be kept in force until released by the Board."
<br />10. On November 13, 1973, the Division received Financial Indemnity Company Bond
<br />No. 235623L, issued to Canon Coal Corporation on November 8, 1973. This bond
<br />covered the "Black Diamond" area in Section 24, T20S, R70W, and was issued in the
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