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Page 2 <br />January 26, 2007 <br />Tatum <br />adobe house or alternatively, in the amount of the diminution in the value of the prvpcrty <br />subject to this suit, <br />On December 19, 2002, the Las Animas County District Court entered the <br />bindings of Fact, Conclusion of Law and Judgment. The Court found: "The measure of <br />damages in a cast of coal mine subsidence in Colorado is the `full amount of diminution <br />of value' as specified by the Colorado Surface Coal Mining Reclamation Act, and <br />regulations adopted pursuant to this Act. See C.R.S. 34-33-103, I"ll, 133.x, 135(6) and 2 <br />Colo. Code of Regs., 4.20.3(2)(b)(ii)." The Court found that this special regulatory <br />measure of damages was due W llit coal Honing opcration5 of Basin and structure[ <br />damage and movement had occurred to our property resulting in damage and the <br />diminution of value to o~u property as a result of coal mining subsidence in the amount of <br />$622,000,00. The court awazded us attorney and expert fees, pre and post judgment <br />utterest. <br />Basin appealed this decision to the Colorado Court ofAppeals, and a decision was <br />issued on November 17, 2005, atiirming the decision by the lower Coun the Mmidate oY <br />the Appellate Court was issued on August 30, 2006. The denial of Basin's Petition for <br />Writ oC Ccrliurai was issued on August 26, 2006. Basin lost! 3 strikes and they are <br />out! ! ! ! <br />Basin had the opportunity to adhere to the Surface Owner Protection as ideniifed <br />in the Colorado Mine Land Reclamatoon Board for Coal Mining, 4.20.3 (2) (a) (b), They <br />failed and refused and subsequently pursuant to Colorado Mine Land Reclamation Board <br />for Coal Mining, 4,20.3 (2) (c), the diminution of value resulting from Basin's coal <br />mining was estriblished on December l9, 2002 in the amount of $622,000.00 ana upheld <br />by the Colorado Court of Appeals and the Colorado Supreme Court. <br />The Golden Eagle Permit is a Federal permit. The Golden Eagle Permit C-1981- <br />U13has haen addressed in correspondence between the State of Colorado and the Denver <br />Office of Surface Mining on the following dates: May 9, 2002, May 1, 2003, November <br />13, 2003, December 31, 2003, June 21, 2004, and .August 23, 2004, acid between Peak <br />Project Management, and the Denver Office of Surface Mining, on August 28, 2003. In <br />communications from the State of Colorado to Basin Resources, the State of Colorado <br />advises Basin to submit documentation to OSM. Cvpies of these we herein attached. I <br />am aware that each of these communications, while not directly affecting the portion of <br />the bond relevant to our property, should have mandated that OSNl review the permit in <br />it's entirety in light of the March, 1995 rulings and pending state compliance. Certainly <br />the December 31, 2003 letter from David Berry to Carl Johnston concerning Northwest <br />Airshafr Closure Plan should have reminded OSlvl of the subsidence issues, the IBLA <br />ruling and the new Tatum lawsuit against 'Basin, since the Northwest Airshaft C]osure <br />Plan was for our property. <br />£0 39vd Wfll~l WIP 69I09686TL 0Z~9T L00Z/9Z/T0 <br />