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215 Centennial Building 1313 Sherman Street Denver, Colorado 80203 iii iiiiiiii~iiu iii ~~ PRIDE IN~~ United States Department of the Interior "~~ OFFICE OF SURFACE MINING ~~ .~~ Reclamation and Enforcement ~ ~ $LLI[e 1200 IN RFPLYRF3FR TO~ 505 Marquette Avenue N.W. Albuquerque, New Mexico 87102 ~tF.'~•EiUCL% April 9, 1993 a~R 121993 Mr. Michael B. Long, Director Division of Minerals and Geology Department of Natural Resources ~JIY~$iUG'J. 1'~iiutl~iL u :;eU1L'LJ~ Re: Permitting Transfer for Golden Eagle Mine and New Elk Mine f1Qar Mr, Lflng; During the Office of Surtace Mining Reclamation and Enforcement's (OSM) March 22 through 25, f 993 random sample inspection of the Golden Eagle Mine, several points of concern were discovered relative to Basin Resources, Inc.'s authorization !o mine tha! should be brought to your attention. These concerns are: (1) allowing Basin Resources to begin mining operations prior to initiation 511u completion of the permit transfer, and (2) the length of time to approve the permit transfer. applied for a transfer of permit rights (11 months after the sale). The permit documents reviewed at the mine are issued in the name of Wyoming Fuels Company, but the records indicate that in June of 1991 Wyoming Fueis was bought by Entec, Inc. As a result of this buyout, the name of the company was changed to Basin Resources, Inc. Not only did the name of the company change, but all the owners involved as well. In May of 1992, the new owners of the ,dine Final action to approve Basin Resources as the permittee did not occur until an Albuquerque Field Office inspector notified your staff on March 30, 1993 that the operator did not have approval to mine. On March 30, 1993, AFO received a faxed copy of a letter from the Division of Minerals and Geology (DMG) to Basin Resources indicating that the succession of operators at the Golden Eagle and New Elk Mines had been approved. However, as of April 7, 1993, formal approval of the transfer had not been accomplished. Therefore, Ten-Day Notices have been issued.