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STt~TE OF COLOlZ~DO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (3031832-8106 <br />Mazch 14, 2007 <br />Scot W. Anderson <br />Davis Graham and Stubbs LLP <br />1550 Seventeenth Street, Suite 500 <br />Denver, CO 80202 <br />Re: Basin Resources -Notice of Violation - No. CV-2007-001 <br />Mr. Anderson: <br />COLORADO <br />DIVISION O F <br />RECLAMATION <br />M[NING <br />-&- <br />SAFETY <br />Bill Rltter, )r. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />This letter is written in response to your letter dated Mazch 2, 2007, received by the <br />Division of Reclamation, Mining and Safety (DBMS) on Mazch 2, 2007. Notice of <br />Violation CV -2007-001 was issued for "Failure to compensate the owner of the damaged <br />occupied residential dwelling and related structure or noncommercial building in the full <br />amount of the diminution in value resulting from subsidence". This violation was issued <br />based upon the previous determinations of the courts including the rulings regazding the <br />occurrence of damage, and the manner and amount of mitigation required. <br />This violation requires Basin Resources, Inc. to provide damage-related compensation as <br />determined and directed by the Las Animas District Court, Case Number O1CV26, and as <br />upheld and directed by the Colorado Court of Appeals Case Number 03A0750. <br />Please contact us with any questions. <br />Sincerel <br />eny <br />Acting Director, Office of Mined Land Reclamation <br />CC: Cheryl Linden, AGO <br />Ann Tatum <br />Office of Office of <br />Mined Land Reclamation Denver Grand )unction Durango Active and InaRive Mines <br />