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III IIIIIIIIIIIIIIII <br />STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Depanmenl of Natural Resources <br />1313 Sherman 51., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 8328106 <br />July 14, 1994 <br />Mr. Rick Mills <br />Colorado Yampa Coal Co. <br />29587 Routt County Road No. 27 <br />Oak Creek, CO 80467 <br />Re: Insurance Certificate - C-81-071, C-82-056, C-84-062, C-81-038 and C-81-044 <br />Dear Mr. Mills: <br />I~~~~ <br />DEPARTMEtJT OF <br />NATURAL <br />RESOURCES <br />Roy Romer <br />Governor <br />lames S. Lochhead <br />Execmive D~reclor <br />Michael B. Long <br />Division Director <br />We recently received the attached Certificate of Insurance (similar certificate previously received <br />in April). We assume that this certificate applies to the above-referenced operations. The <br />certificate does not comply with the pertinent regulations, and changes are required to avoid an <br />enforcement situation. Please note that we sent a similar letter on May 4, 1994. <br />Please contact the insurance company to obtain a certificate or certificates which itemize(s) the <br />specific operations covered by the policy. As with previous certificates, all insured mine names <br />and permit numbers must be listed. <br />Please also have the insurer eliminate the words "endeavor to" and "but failure to mail such <br />notice shall impose no obligation or liability of any kind upon the company, or upon this <br />agency", from the cancellation clause. <br />Finally, we note that this is a "claims made" policy, which does not appear to account for <br />retroactive claims. This does not comply with the continuous coverage requirement. Please <br />refer to the attached OSM document for a detailed explanation of this issue, and amend the <br />policy accordingly. <br />We request your immediate attention to this matter, since we cannot verify that the above- <br />referenced operations are currently in compliance with the applicable insurance requirements. <br />The subject mines may receive enforcement actions if we cannot verify compliance in the near <br />future. <br />Thank you for your cooperation and assistance. <br />3n Specialist <br />DAB/bjw <br />Enclosures <br />cc: Janet Binns <br />Kent Gorham <br />Steve Shuey <br />m:\oss\bjw\deb <br />