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Page 1 of 2 <br />Gorham, Kent <br />From: Henry Austin (HAustin@osmre.gov] <br />Sent: Wednesday, August 29, 2007 12:20 PM <br />To: Gorham, Kent <br />Cc: Henry Austin <br />Subject: FW: Basin Resources, Inc. Aug. 20, 2007 Certificate of Liability Insurance <br />Hey Kent <br />WE got so excited yesterday about the personal injury and property damage clauses, that I remember we <br />discussed the BLASTING language that Rule 2.03.9 requires, and that we normally require on these certificates. <br />Of course, we discussed that they awaiting Phase III BR.........and do not have a blasting license....so hopefully <br />that is adequate for now. Just thought I'd mention it again. <br />Thanks Kent ...........................Henry <br />Henry Austin <br />Senior Reclamation Specialist <br />USDI-Office of Surface Mining <br />1999 Broadway, Suite 3320 <br />PO Box 46667 <br />Denver, CO 80201-6667 <br />haustin - osmre.gov <br />(303) 844-1400 x1466 (office) <br />(303) 670-5475 (Telework-home office-Mon.& Fri.) <br />(303) 844-1545 (Fax) <br />From: Henry Austin <br />Sent: Tuesday, August 28, 2007 3:20 PM <br />To: Brown, Sandy; Berry, David <br />Cc: 'Gorham, Kent'; Henry Austin; James Fulton <br />Subject: Basin Resources, Inc. Aug. 20, 2007 Certificate of Liability Insurance <br />Hi all: <br />Kent and I were talking today about the above certificate DRMS provided is in their Aug. 23, 2007, TDN response <br />We were reviewing the language in Colorado Rule 2.03.9 which states......... "The certificate shall provide for <br />personal injury and property damage protection........". <br />The certificate is not clear on property damage protection. Kent and 1 speculate the "General Liability" and <br />"Commercial General Liability" type of insurance coverage, which is checked on the form MAY include property <br />damage coverage. <br />In any event, in this case I recommend we contact the Nation Union Fire Insurance Co (the Knoxville, TN) phone <br />number on the certificate, and see if can some clarification for property damage coverage. <br />(This may apply to ALL these certificates of insurance at other mines that are not clear on property damage <br />coverage as required in Rule 2.03.9) <br />Please le us know how you want to proceed ................................. Henry. <br />Henry Austin <br />Senior Reclamation Specialist <br />USDI-Office of Surface Mining <br />8/29/2007 <br />