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15. On December 1 , 1975, the Division received a Notice of Cancellation from the Financial
<br />Indemnity Company, stating Financial Indemnity was preparing to cancel Bond
<br />No. 235623L on January 29, 1976. This was the bond established solely for the Black
<br />Diamond Strip Mine in Section 24, T20S, R70W. On December 3, 1975, the Division
<br />responded to Financial Indemnity, stating that because the Notice of Cancellation had not
<br />been submitted to the Division far enough in advance of the expiration date, the bond
<br />would have to remain in force until November 8, 1976.
<br />16. On January 13, 1976, the Division conducted a bond release inspection based upon a
<br />request from The Corley Company for certain lands in Sections 1 and 12 of T20S R70W.
<br />The bond release request was denied by the Board during a meeting held on
<br />January 20, 1976.
<br />17. On January 12, 1976, the Cherokee and Pittsburg Coal and Mining Company Lease,
<br />originally granted to The Corley Company on May 1, 1970, then assigned by The Corley
<br />Company to Canon Coal Corporation on June 1, 1973, then terminated by Cherokee and
<br />Pittsburg on October 3, 1975, was reinstated by Cherokee and Pittsburg, and assigned by
<br />Canon Coal Corporation to GEC Minerals, Inc. This January 12, 1976 transaction was in
<br />effect the granting of a lease by Cherokee and Pittsburg to GEC Minerals, Inc. for the lands
<br />originally leased to The Corley Company on May 1, 1970.
<br />On February 20, 1976, The Corley Company leased to GEC Minerals, Inc. the lands
<br />previously leased to Canon Coal Corporation.
<br />As such, by February 10, 1976, GEC Minerals had now (eased all the lands in T20S, R69
<br />and 70W, previously leased by Canon Coal Corporation (Exhibit F).
<br />18. On April 1, 1976, GEC Minerals, Inc. submitted to the Division an application form entitled
<br />"Request to Succeed Operator at Uncompleted Operations" for the "Black Diamond" and
<br />"GEC Strip and Auger" operations (Exhibits G1 and G2-. The legal description identified
<br />lands associated only with the lease from The Corley Company, namely Sections 19, 30,
<br />and 31 in T20S, R69W, and Sections 23, 24, 25, and 26 in T20S, R70W. While
<br />Section 20 of T20S, R69W was not listed in the Request to Succeed Operator application,
<br />it was part of the February 10, 1975 lease between The Corley Company and GEC.
<br />19. At this point (April 1, 1976), no release of bond liability for any of the bonds submitted to
<br />the Division had occurred. As such, the following bonds issued to the following entities
<br />covered the following areas (Exhibit H):
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