|
~~ .
<br />~~~ ~I~~I~~~
<br />~~~~
<br />~ ~I~
<br /> sss
<br />SUMMARY OF THE PERMITTING AND BONDING HISTORY OF THE CORLEY COMPANY/
<br />CANON COAL CORPORATION/GEC MINERALS, INC. MINING OPERATIONS
<br />1. On April 7, 1970, the Division received from The Corley Company St. Paul Fire and Marine
<br />Insurance Company Bond No. 400 BB 3347. This bond, issued on April 6, 1970, was
<br />established for an area known as "Corley Strip" (Division File No. 73-4), situated in
<br />Section 13, T20S, R70W. This bond was issued in the amount of 5100/acre, for 20
<br />acres, or 55,000.00, whichever was greater. This bond was approved by the Executive
<br />Director of the Department of Natural Resources on April 17, 1970.
<br />2. On May 1, 1970, The Corley Company leased from the Cherokee and Pittsburg Coal and
<br />Mining Company certain tracts of land in Section 31, T19S, R69W; Section 35, T19S,
<br />R70W; Sections 6, 7, and 18, T20S, R69W; and Sections 1, 11, 12, 13, and 14, T20S,
<br />R70W. On June 29, 1970, the Division received The Corley Company's reclamation plan
<br />for the "Corley Strip Coal Mine" for lands in T20S, R69 and 70W.
<br />3. On September 15, 1972, the Land Reclamation Board ordered all bonds for strip coal
<br />mines in Colorado be increased to a minimum of 515,000.00. On December 5, 1972, the
<br />Division sent a letter to The Corley Company stating that for the Corley Strip Mine, the
<br />new bond amount had been established at 515,000.00 or 5750.00/acre, whichever was
<br />greater.
<br />4. On December 18, 1972, the Division received from The Corley Company a second bond
<br />from the St. Paul Fire and Marine Insurance Company. This second bond, issued on
<br />December 12, 1972 and also numbered 400 BB 3347, was written for 5750.00 per acre,
<br />or 515,000.00, whichever was greater. This second bond covered an area different from
<br />the first bond, however. This second bond covered an area known as "The Corley Strip"
<br />in Sections 7 and 18, T20S, R69W and Sections 1 and 12, T20S, R70W. This second
<br />bond was signed by the Executive Director on August 24, 1980.
<br />5. At this point (December 18, 1972), Section 13 of T20S, R70W, was covered by one bond
<br />for 55,000.00, and Sections 7 and 18 of T20S, R69W and Sections 1 and 12, T20S,
<br />R70W were covered by a second separate bond of 5750.00 per acre, or 515,000.00,
<br />whichever was greater ISee Exhibits Al-A31.
<br />6. On March 1, 1973, Ms. Joyce Skaggs with the St. Paul Companies wrote to the Division
<br />stating that Bond No. 400 BB 3347 (she didn't say which onel had been replaced by a
<br />new bond, No. 400 DP 5818, for 515,000.00. The Division, however, apparently never
<br />received this replacement bond, according to Ms. Skaggs in a letter to the Colorado
<br />Attorney General's Office dated February 13, 1976. In this letter, Ms. Skaggs stated that
<br />"A new bond for $15,000.00, Bond No. 400 DP 5818, was issued at this time (December
<br />1972), and we were informed by our insurance agent that Dr. Corley, Corley Coal, was
<br />holding this bond until matters were straightened out. When the new bond forS15,000.00
<br />
|