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Page 2 of 3 <br />Fulton/TDN X07-140-116-002 TV2 <br />August 23, 2007 <br />The DRMS is also in receipt of additional and apparently related letters dated July 27, <br />August 1, 9, and 22, 2007 reiterating the issues addressed in the above-listed letters. <br />Response to Allezed Violation Number 1 <br />Basin Resources, Inc. (the applicant) previously provided an insurance certificate to <br />DRMS dated June 27, 2007, verifying that a public liability insurance policy was in force <br />for the Golden Eagle Permit Number C-81-013. The June 27, 2007 certificate lists the <br />"Insured" as Westmoreland Coal Company, and it includes "The Golden Eagle Mine <br />Permit # C-81-013" in the "Description of operations/locations/vehicles/exclusions added <br />by endorsement/special provisions" section of the certificate. The DRMS accepted this <br />certificate as evidence of compliance with the purpose and intent of Rule 2.03.9. This <br />June 27, 2007 certificate indicated that the Golden Eagle Mine Permit Number C-81-013 <br />was indeed covered by a public liability insurance policy. The June 27, 2007 certificate <br />was provided to OSM with our letter of July 26, 2007. <br />On August 20, 2007, the DRMS received a new certificate dated August 20, 2007 from <br />Basin Resources, Inc. (copy attached). This certificate verifies that the Golden Eagle <br />Mine Permit Number C-81-013 is covered with an insurance policy issued by National <br />Union Fire Insurance Company of Pittsburgh, and specifically indicates Basin Resources, <br />Inc. as the "Insured". <br />Based on the facts as outlined above, DRMS disagrees that there is or has been any <br />violation of Rule 2.03.9. Therefore, DRMS respectfully asserts that the facts outlined <br />above indicate good cause to decline issuance of a Notice of Violation in this matter. <br />Response to Alleged Violation Number 2 <br />Based upon the information available to the DRMS at this time, Basin Resources, Inc. is <br />the valid permittee for the Golden Eagle Mine Permit Number C-81-013. This was also <br />stated in the DRMS letter dated July 26, 2007 (previously copied to OSM). <br />Westmoreland Coal Company is the owner of Basin Resources, Inc. and is listed <br />accordingly in the Golden Eagle Mine Permit Number C-81-013. All written approvals <br />pertaining to the issuance and renewals of the Golden Eagle Mine Permit Number C-81- <br />013 are of record, and were previously transmitted to the OSM when each such issuance <br />or renewal occurred. Based upon the above, Basin Resources, Inc. does have the required <br />written approvals for Golden Eagle Mine Permit Number C-81-013. <br />The TDN cites to the Rule 2.08.6 (Transfer, Assignment or Sale of Permit Rights). <br />Although the TDN is not specific as to the nature of the alleged violation, we assume that <br />the issue is related to the relationship between Basin Resources, Inc. and Westmoreland