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January 26, 2007 Page 3 Tatum The June, ZOO4 rCrlLLlt ReLLewal reflocts that OSM was notified of this requested permit renewal. The State queried AVS on I%ebruary 3, 2004. The information obtained would show Westmoreland as the parent company of Racin Resrnrrces, 'tnc. Pazagraph XV Subsidence Control pace 17 of the Permit Renewal recites the same provisions wherein the Tatums were awarded their judgment, which was not paid as of 2004. Under Grants, Conditions and Agreements, ©12 states: "This permit may be revoked or suspended for non-compliance with the Act or lawflil Hiles or regulations promulgated by the Boazd." The Golden Eagle Permit C-1981-013 was continually bei'ore OSM froth the date of our Judgment to the present time. Action ehouid have been taken by OSM to insure that 817.121 b paragraph (5) was enac[ed by Colorado. For seven years, Colorado has been without the protection intended and provided by Code of Federal Regulations Title 30 Mineral Resources Chapter VII section 817.121 b paragraph (5). As a Federal Permit, OSM Imows that Westmoreland Coal purchased Basin Resources, Inc, in 200]. As I understand it under the cooperative agreement, the State of Colorado may issue Permi[s but bonding must include the OSM and OSM must be advised of all state requirements/regulations pertaining to bonding requirements. Westmoreland Coal b}' acknowledgment, and the Stare of Colorado and OSIvI concur that Westmoreland Coal is the responsible entity and the financially obligated entity for the (',olden Eagie Permit C-1981-013. In a January 11, 2001 letter front Kent Gorham, State of Colorado, to Carl Johnston, OSM, Mr. Gorham states: "This revision updates the ownership, financial and compliance information for the new owners of Basin Resources, Inc. Westmorelazid Coal Company. The pannittee of the Uolden l;agle mine will remain Basin Resources, Inc." We have objec[ed in writing to the State of Colorado on October 19, 2006 and aSain on November 27, ?006 to the release of any Golden '6agle bonds. Copies of these letters are enclosed. The State of Colorado responded to our concerns on November 3, 2006 acid December 11, 2006. Copies are enclosed. Our objections should have been included in any and all material relevant to the release of any portions of the Golden Eagle permit provided to OSM. Again, our objections and concerns were then off record and our judgment made known. Aren't there State and/or Nederal requirements wherein coal companies MUST advise the State and/or the Federal govenunent when a coal cuuipuciy is found liable for dazr7ages covered under the State m1d/or Federal rules? Loth OSM and the State of Colorado know the history of Tatum/Basinl! In March 1995, the Code of Federal Regulations Title 30 Mineral Resources Chapter VII section 817.121 b paragraph (5): Adjustment of bond amount fur subsidence damage wss adopted. The State of Colorado was required to implement this new law within a reasonable period of time. These regulations exist to ensure timely compliance and compensation for subsidence damage and as a satbguard against the coal b0 39t7d Wfll~l WIP 65t09486tL 0L~9t L00Z/9Z/t0