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. .. <br />July 2, 2003 <br />Page 2 of 2 <br />Tatums <br />rulings were based upon a lack of evidence that the well in question was viable or that there was a water right <br />associated with the well. The manner in which the vent shaft was sealed is a valid issue as discussed below, <br />but the manner of vent shaft closure does not impact the previous rulings regarding the alleged well damage. <br />The January 16, 2003 letter also references a possible second well. To investigate this issue, we conducted a <br />review of the State Engineers records during June 2003. We are not able to locate any permitted or registered <br />wells that coincide with your reference to a second well. It also appears that there has not been any change to <br />the permitting status of the originally investigated well. <br />Vent Shaft Closure <br />The use of a concrete cap is an allowable method of surface closure for the vent shaft. However, we are <br />evaluating the manner in which the vent shaft borehole has been sealed. Our recent letter to Basin Resources <br />is enclosed. Basin Resources is required to properly revegetate the surface disturbance area adjacent to the <br />vent shaft area in accordance with the permitted revegetation plan. <br />Reclamation Bond/Civil Action and Judement <br />We are aware of the December 19, 2002 ruling of the District Court, Las Animas County (Ol CV 26). The <br />June 25, 2003 letter seems to make a connection between the civil case and the reclamation bond held by <br />DMG. The reclamation bond held by DMG for the Golden Eagle Mine (Permit No.C-81-013) is posted and <br />maintained pursuant to the bonding requirements of C.R.S. 34-33-113. We do not believe that there is a <br />connection between the monetary judgment received in the above-referenced civil action, and the remaining <br />bond held by DMG for the Golden Eagle Mine . <br />Possible Westmoreland Permits <br />During our conversation on July I, 2003, Ms. Tatum asked if Westmoreland is associated with any permits in <br />Colorado. We are not aware of any Westmoreland affiliations other than those associated with the Golden <br />Eagle Mine Petmit No. C-81-013 and exploration notice CX-92-213. Basin Resources remains as the <br />permittee with both of these permits. <br />Please let us know if you need any additional information. <br />~rvisor <br />