|
Section 1, T20S, R70W, while the lease covered only the east half of the west half of
<br />Section 1. Also, the lease included the south half of the southeast quarter of Section 35,
<br />T19S, R70W, while the amendment listed the south half of the southeast quarter of
<br />Section 36.)
<br />26. After several letters passed between the Division, the Corley Company, the Attorney
<br />General's Office and the Executive Director's office during July 1977 and May 15, 1978,
<br />the Mined Land Reclamation Board on June 28, 1978 considered The Corley Company's
<br />December 14, 1975 request for release of Bond No. 400 DP 5818, and released the
<br />Company from reclamation liability of "lands mined by The Corley Company in Sections 1,
<br />7, 8, and 12 of T19S, R70W," according to a Division letter dated July 5, 1978. This
<br />legal description apparently is incorrect, in that the legal description associated with The
<br />Corley Company's $15,000.00 Bond No. 400 BB 3347 (which Bond No. 400 DP 5818
<br />was supposed to replace but wasn't submitted to the Division) was Sections 7 and 18,
<br />T20S, R69W and Sections 1 and 12, T20S, R70W. Bond No. 400 BB 3347, for
<br />55,000.00, in Section 13, T20S, R70W was not released at the June 28, 1978 Board
<br />Meeting (Exhibits M1-M6).
<br />27. Regarding your questions about Canon Coal's bond releases, the June 28, 1978 release
<br />was, in effect, the first. Bond No. 400 BB 3347, issued to The Corley Company on
<br />December 12, 1972, had been "transferred" from The Corley Company to Canon Coal by a
<br />Name Change Rider submitted to the Division on August 8, 1973. This "transfer"
<br />coincided with the Division's September 5, 1973 issuance of a Land Stabilization
<br />Reclamation Agreement for the "Corley S&A Mine", operated by Canon Coal, in Sections 1
<br />and-12, T20S, R70W (See Item No. 9 herein). Because the Name Change Rider had,
<br />however, apparently not been endorsed by either Canon Coal or The Corley Company, this
<br />"transfer" of the bond appears to never have actually occurred. As such, Canon Coal's
<br />operation under the "Corley S&A Mine" Land Stabilization and Reclamation Agreement had
<br />been bonded by The Corley Company's 515,000.00 (Bond No. 400 BB 3347) up to the
<br />June 28, 1978 bond release.
<br />28. At this point (June 28, 1978), it is apparent that Canon Coal Corporation had one bond in
<br />effect: the 515,000.00 Insurance Company of North America Bond (No. M908225). As
<br />stated earlier, it appears that this bond was submitted to cover an expanded "Corley Strip
<br />and Auger Mine" area identified in the January 13, 1975 Canon Coal renewal applications.
<br />It is also apparent that the Financial Indemnity Company Bond No. 235623E was allowed
<br />to expire on November 8, 1976 (Exhibits N1-N2). Bond No. M908225 covered in its legal
<br />description Section 24, T20S, R70W, which was previously covered under Bond
<br />No. 235623L.
<br />29. On October 3, 1978, the Division inspected the GEC site. On October 19, the Division
<br />notified GEC of a potential violation for GEC not following its mining plan, and scheduled
<br />GEC to appear before the Board. On October 25, the Board issued the NOV and ordered
<br />GEC to revise its mining plan. On January 10, 1979, GEC submitted its apparent third
<br />7
<br />
|