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iii iiiiiiiiniii iii <br />999 <br />~;ECr -tD <br />The Pittsburg & Midway Coal Mining Co. <br />- ~ ~ ~ A Chevron Company MAR i U 3999 <br />~~~' 6400 South Fiddler's Green Circle, Englewood, CO 60111-4991 <br />ivis+cr ,ner3158Geobgy <br />Mail Address: P.O. Box 6518, Englewood, CO 80155fi516 • FAR (30319304204 • Phone (30.3) 9333600 <br />Lisa R. Vance Direct Line: (707)970-4129 <br />Engineering/Environmrnlal Assistant Fex: (JOJ) 970-4197 <br />E-mei I: Irva®chevron. com <br />March 9, 1999 <br />Mr. Kent Gorham <br />Colorado Mined Land Reclamation Division <br />1313 Sherman SVeet, Room 214 <br />Denver, Colorado 802032273 <br />Re:Certificate of Insurance No. 99-007C <br />Dear Mr. Gorham: <br />The Office of Surface Mining Recamation & Enforcement (OSM) has questioned the adequacy <br />of The Pittsburg & Midway Coal Mining Co.'s (P&M's) liability insurance coverage. The OSM <br />believes that P&M's primary multi-state policy is not sufficient insurance to cover claims that may <br />occur at two or more operations. P&M disagrees with the OSM's contention; the Company has <br />always maintained adequate insurance coverage. However, to satisfy the OSM's concerns, P&M <br />has an excess liability policy. <br />Liability insurance coverage of at least $300,000 per occurence and $500,000 aggregate is <br />required in the states where P8M has operations. P8M's renewed CLI fortes have a general <br />liability policy and an excess liability policy. The total liability of these two multi-state policies is <br />$4.5 million per orycurence and $7.5 million aggregate. This should provide overall liability <br />coverage to insure all of P8M's operations. (Note: There is one spare coverage in the event P&M <br />permits a new operation in 1999.) This overall liability coverage will be reflected on the March 1, <br />1999 renewed Certificate of Liability form which your office should receive from March & McLennan. <br />EnGosed is a summary of P&M's multi-state operations and the amount of required liability <br />insurance. This information indicates that P&M's multi-state insurance coverage is adequate to <br />comply with regulatory requirements. <br />If you have any questions regarding this information, please contact me at (303) 930-4129. <br />Sincerely, <br />~(/«~~' <br />Lisa R. Vance <br />EnGosures <br />cc: B.D. Gontarek, Environmental Affairs <br />D.W. Kemheval, Engineering <br />