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Page 1 of 1 <br />Hernandez, Daniel <br />From: Berry, David <br />Sent: Monday, February 04, 2008 8:10 PM <br />To: Hernandez, Daniel; Brown, Sandy <br />Cc: Gorham, Kent; Cramer, Johanna <br />Subject: RE: Golden Eagle Mine Permit Transfer <br />I did get a call from Westmorland VP...name escapes me now. He told me of the pending SO submittal. If he <br />mentioned the bond, it did not register, and I did not make any committments regarding bond issues. However, I <br />think the SO reg does have some ofdd language about the transfer of a bond. <br />DB <br />Dave and Sandy - <br />We've received an SO application from Basin Resources Inc to transfer the Golden Eagle Mine to New Elk Coal <br />Company. The cover letter submitted with the SO app states, "The reclamation bond for the Golden Eagle permit <br />will be maintained by Basin Resources, Inc". <br />Johanna and I looked at the Rules, which indicate that only applicants (not third parties) may submit bonds for <br />mine permits. As such, it would seem that we need to inform Basin Resources that we cannot approve their SO <br />app unless a bond is submitted by New Elk Coal Company. Do you both agree? Has anyone at Basin <br />Resources Inc contacted either of you about this SO? <br />Thanks! <br />2/7/2008