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20. On April 13, 1976, the Land Reclamation Board met to consider GEC's application for
<br />succession of operator (Exhibits 11-13). At that time, GEC asked for the succession to be
<br />approved for only the operations occurring in Section 24, T20S, R70W (Canon Coal
<br />Corporation, the Black Diamond Stripl. The Board approved the request with two
<br />conditions:
<br />(1) GEC would submit a map that adequately delineated those disturbances created prior
<br />to May 1 , 1973 from those created after May 1, 1973, as the succession was
<br />approved with the understanding that GEC would be responsible for reclaiming only
<br />those disturbances created after May 1 , 1973;
<br />l21 GEC would submit an acceptable mining plan and reclamation plan.
<br />The bond amount was set at $25,000.00.
<br />21. On April 14, 1976, GEC and Hartford Accident and Indemnity signed into effect Bond
<br />No. 4312804. This bond, issued for 525,000.00, covered Sections 19, 20, 30 and 31,
<br />T20S, R69W and Sections 23, 24, 25, and 26, T20S, R70W, coinciding with the
<br />February 10, 1976 Lease between GEC and The Corley Company (Exhibits J1-J21.
<br />22. On August 30, 1976, the Division requested GEC Minerals to submit an application for the
<br />additional acreage beyond Section 24, T20S, R70W, as, under the new law, the old permit
<br />materials for those areas were inadequate.
<br />23. On November 17, 1976, the Division received a letter from The Corley Company
<br />requesting a response to a bond release request submitted dated December 14, 1975. On
<br />April 7, 1977, the Division inspected the site.
<br />24. On April 1, 1977, GEC submitted its application for conversion of the Canon Coal permits.
<br />The file was given the number 77-48. On June 23, 1977, the Board approved the
<br />conversion application and set the bond amount at 566,440.00. On July 15, 1977, GEC
<br />increased Hartford Accident and Indemnity Bond No. 4312804 for 525,000.00 to
<br />566,440.00. On August 26, 1977, the Board issued Permit No. 77-48 to GEC
<br />(Exhibits K1-K7).
<br />25. On July 15, 1977, GEC submitted an amendment to Permit No. 77-048 (it appears this
<br />amendment was deemed "Amendment No. 2" and the conversion of the Canon Coal
<br />Permits "Amendment No. 1 "). On September 29, 1977, the Board approved this
<br />amendment and ordered the bond increased from 566,440.00 to 5134,000.00
<br />(Exhibits L1-L3). We, however, have not been able to find a record of this increase in
<br />bond being submitted. (Although this amendment appears to have been filed to coincide
<br />with the Cherokee and Pittsburg lease as shown in Exhibit F herein, two discrepancies
<br />between the lease and the application exist. The amendment included the east half of
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