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amount of $15,000.00 per acre, or 515,000.00, whichever was greater, up to
<br />515,000.00. The Division's copy of this bond is unsigned by the Executive Director.
<br />Exhibit E shows the three permitted areas covered by three different bonds that existed by
<br />this time.
<br />11 . On June 25, 1974, the Division received from The Corley Company a request for bond
<br />release at the Corley Strip Mine for lands in Section 6 and 7, T20S, R69W and in the
<br />W/2 of Section 1, the NW/4 of Section 12, and the NE/4 of Section 24, T20S, R70W.
<br />The request stated that strip mining had been conducted by The Corley Company prior to
<br />May 1, 1973, and that the reclamation work had been done by The Corley Company. On
<br />September 5, 1974, the Division responded, requesting a more precise identification of the
<br />lands requested to be released. On February 11, 1975, The Corley Company responded,
<br />identifying the mine as "The Corley Strip and Auger," the Bond No. as "400 DP 5818,"
<br />and the areas requested for release as the W/2 and the E/2 the SE/4, of Section 1, and the
<br />N/2 of the NW/4 in Section 7, T20S, R69W. On February 27, 1975, these areas were
<br />inspected, and on March 15, 1975, the Division wrote to The Corley Company denying the
<br />requests for bond release.
<br />12. On January 13, 1975, Canon Coal Corporation submitted to the Division applications for
<br />renewal of its licenses to operate the Corley Strip and Auger Mine and the Black Diamond
<br />Strip Mine. The legal description for the Black Diamond Strip remained as Section 24,
<br />T20S, R70W, but the legal description for the Corley Strip and Auger Mine was now
<br />identified as Sections 6, 7, 18, 19, 30 and 31, T20S, R69W, and Sections 1, 12, 13, and
<br />24,.T20S, R70W. On February 25, 1975, the Division received Insurance Company of
<br />North America Bond No. M 90 82 25, issued to Canon Coal Corporation on February 7,
<br />1975 in the amount of 515,000.00. This bond was signed by the Executive Director on
<br />August 24, 1980. Although no legal description was provided with the bond, it appears
<br />that this bond was submitted for the additional area within the Corley Strip and Auger
<br />Mine, as a bond of 515,000.00 already existed for the Black Diamond Strip and its legal
<br />description hadn't been increased in the renewal application, while the legal description for
<br />the Corley Strip and Auger Mine had.
<br />13. On October 3, 1975, Cherokee and Pittsburg Coal and Mining Company terminated its
<br />May 1, 1970 lease with The Corley Company. This lease had been assigned to Canon
<br />Coal Corporation by The Corley Company on June 1, 1973.
<br />14. On November 26, 1975, the Division conducted an inspection of The Corley Company/
<br />Canon Coal operations and found that operations were occurring in Section 19 of T20S,
<br />R69W, without specific approval from the Division. In light of the fact that Canon Coal's
<br />January 13, 1975 lease renewal application for the Corley Strip and Auger Mine included
<br />Section 19, and that a new bond from Canon Coal in the amount of 515,000.00 was
<br />submitted to the Division on February 25, 1975, it appears that Canon Coal assumed it
<br />had approval to conduct these operations.
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