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<br /> <br />MEMO TO GILBERT F, RINDAHL, Director, Reclamation Staff <br />September 15, 1976 <br />Page Two <br />RE: SPECIFICATIOrd AGGREGATES, INC, <br />received the permit, Thus, the Board, if it choses <br />can recognize the permit as a five year one rather <br />than first requiring the inspector to litigate the <br />question. This type of an answer places the burden <br />where it belongs, on the operator. The question as to <br />whether he had a five year permit or not is a legal <br />one and can only be determined by the courts. By <br />notifying him of the problems inherent with his pre- <br />vious permit, the operator is properly forewarned of <br />possible legal attacks on his permit, and the Board <br />doesn't repeat its previous errors of misleading <br />operators by not fully advising them of possible <br />problems. In my opinion, this tactic is the best for <br />the Staff and the Board to take, because it places <br />the decision where it belongs on the operator; yet, <br />it enables the Board to work with the operator re- <br />gardless of which legal theory he wishes to espouse. <br />b. That regardless of whether Specification Aggregates <br />wishes to contend that it has a permit expiring in <br />1976 or 1979, in my opinion, the Land Stabilization <br />and Reclamation Agreement is effective for all lands <br />affected by its mining operations since April 12, <br />1971. <br />2 . BorrDS . <br />The bonds on the operation are in an unacceptable condition. Some <br />of the bond forms contain limitations on the state's rigr.t to en- <br />force the bond which do not conform to the statutory language <br />which has remained unchanged since 1969. Evidently a fifty thou- <br />sand dollar bond was submitted to the Bureau of Mines in April, <br />1971. The original bond, issued by General Insurance Co. of <br />America is not in the file; however, there are continuation certi- <br />ficates for the years 1972-1975. There is also a one-yesir <br />performance bond from Aetna Casualty and Surety Company i:rom July <br />21, 1972-73. However, there are no continuation certificates <br />filed on this bond. In October, 1974, the company submitted a <br />sixty-six thousand dollar ($66,000.00) bond from Aetna C~isualty <br />and Surety Company. The bond was to replace the fifty thousand <br />$50,000.00) dollar bond from General Insurance Company. The legal <br />problem is that although the replacement may have been intended by <br />both the Board and the operator to include previously mitred Lands, <br />the new bond did not specifically include the previously mined <br />land and evidently the previous bond was released. In acidition, <br />