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Mr. Dave Berry <br />Division of Reclamation, Mining & Safety <br />December 7, 2006 <br />Page 2 <br />Basin had the opportunity to adhere to the Surface Owner Protection as identified <br />in the Colorado Mined Land Reclamation Board for Coal Mining, 4.20.3 (2) (a) (b). <br />They failed and refused and subsequently pursuant to Colorado Mined Land Reclamation <br />Board for Coal Mining, 4.20.3 (2) (c) the diminution of value resulting from Basin's coal <br />mining was established on December 19, 2002 in the amount of $622,000.00 and upheld <br />by the Colorado Court of Appeals and the Colorado Supreme Court. <br />There is NO monetary evaluation that remains to be determined by the State. <br />The Division of Reclamation, Mining & Safety must, in order to comply with the <br />State Regulations, issue a NOV for failure to compensate the landowners. Absent <br />immediate action by Basin/Westmoreland to cure the NOV, the issuance of a Failure to <br />Abate must be issued, and a cessation order and a levy against each corporate entity. <br />As your agency is aware, Basin Resources, Inc. changed ownership to Colorado <br />Westmoreland in 2001. The Organizational Chart or OFT shows Basin Resources, Inc. <br />directly under Westmoreland Coal Company. <br />The States position is clear you must, in order to comply with the State <br />regulations issue the requested NOV. <br />If you have any questions please do not hesitate to contact me. Thank you. <br />Very truly yours, <br />Ann Tatum G~ <br />AT/s <br />Enclosures <br />