REV93095

• Permit No: C1981013
• IBM Index Class Name: Revision
• Doc Date: 3/2/2007
• Doc Name: Bond Adjustment Notification
• From: DRMS
• To: Basin Resources Inc
• Type & Sequence: SI1
• Media Type: D
• Archive: No

-~ STATE OF COLORADO
DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203 C O L O R A D O
DIVISION O F
Phone: [phone] RECLAMATION
FAX: [phone] M[ N I N G
- &-
SAFETY
BiN Ritter, )r.
Mazch 2, 2007 Governor
Harris D. Sherman

Basin Resources, Inc. Executive Director
C/O Peak ro ect Mana ement
p j g Ronald W. Cattany
Divi:ion Dlrectnr
34115 County Road No. 20.8 Natural Resource Trustee
Trinidad, CO 81082
Via Fax to: [phone] and
U.S. Mail
Re: Bond Adjustment -Basin Resources, Inc. -Permit No. C-1981-013
Mr. Thompson:
- - -_.
On Februazy 13, 2007, the Division of Reclamation, Mining and Safety (DBMS) received
a letter dated February 12, 2007 from the Office of Surface Mining (OSM) stating in
part: "....30 CFR 817.121 (c)(5) remains a requirement of Colorado. Therefore, under 30
CFR 732.17, OSM is requiring that within 10 days, Colorado submit either a proposed
written amendment or a description of an amendment and timetable for submission.
Colorado could also respond with an explanation of existing authority consistent with 30
CFR 817.121(c)(5):' The DBMS response to OSM dated February 15, 2007 indicates
that DBMS can implement the federal requirements defined CFR 817.121(c)(5) through
the existing Colorado law and regulations. Copies of the February 13, 2007 OSM letter
and the February 15, 2007 DBMS response were previously sent to Basin Resources, Inc.
on February 15, 2007 and copies aze also enclosed with this letter.
Based upon the general requirements of C.R.S. 34-33-113 and Rule 3.02, and consistent
with the requirements of CFR 817.121 (c)(5), Basin Resources, Inc. must post additional
bond to ensure faithful performance of all requirements of the Colorado Surface Coal
Mining Reclamation Act (Act). Compensation for subsidence damage is a requirement of
the Act and must now be bonded.
Pursuant to Rule 3.02.2(4)(a), Basin Resources, Inc. is hereby notified that additional
bond must be posted for the subsidence damage compensation amount specified in the
Las Animas County District Court, Case Number O1CV26. This notice will initiate the
bond adjustment process specified in Rule 3.02.2(4)(a). Basin Resources, Inc. may
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Office of Office of
Mined Land Reclamation Denver t Grand )unction Durango Active and Inactive Mines