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iii iiiiiiiiiiiiiiii <br />999 <br />United States Department of the Interior <br />OFFICE OF SURFACE MINING <br />Reclamation and Enforcement <br />Applicant~olazor System Office <br />n F r. F IV E D 2679 Regency Road <br />Lexington, Kentucky 40503 <br />SEP 2 5 1997 <br />SEP 19 1997 <br />~ner~c, ~'. L°taC~Y <br />.:q . '. v. ~~. <br />Mr. Bruce D. Reed, Director of Legal Affairs <br />Berwind Natural Resources Corporation <br />3000 Centre Square West, 1500 Market Street <br />Philadelphia, Pennsylvania 19102 <br />Dear Mr. Reed: <br />This letter constitutes the final decision of the Office of Surface Mining Reclamation and <br />Enforcement (OSM) concerning the presumption of an ownership or control link between Dr. <br />Thomas V. Falkie and Cyprus Amax Minerals Company (hereinafter "Cyprus Amax"). In your <br />Apri18, 1997, letter, you challenge the presumption of Dr. Falkie's control of Cyprus Amax. <br />OSM now issues a final agency decision in this matter. <br />In your letter you state that due to the nature of Dr. Falkie's involvement on the Cyprus Amax <br />board and because the board has no "authority for or participation in day-to-day operations of <br />Cyprus and its subsidiaries" a link between Falkie and Cyprus Amax's coal operations is <br />precluded. Essentially, you have argued that Dr. Falkie's duties within Cyprus Amax are such <br />that he does not have "control" within that corporation, and therefore, there can be no <br />presumption of an ownership or control fink between Berwind Natural Resources Corporation <br />(hereinafter "Berwind") and Cyprus Amax based upon his being a controller common to the two <br />corporations. <br />OSM has reviewed the information you provided as well as other information available to us. <br />OSM also requested information from Cyprus Amax and we have included the response in our <br />review. In summary, Dr. Falkie has been a director of Cyprus Amax since July 1, 1988, and is a <br />member on three of the board's five committees. None of the three committees on which Dr. <br />Falkie serves appeaz to have the authority, directly or indirectly, to determine the manner in which <br />the surface coal mining operations of Cyprus Amax are conducted as required pursuant to 30 <br />CFR § 773.5(b). <br />DECISION <br />It is OSM's decision that the presumption of Dr. Falkie's ownership or control relationship to <br />Cyprus Amax is successfully rebutted. Therefore, there is no ownership or control link between <br />Berwind and Cyprus Amax based upon the association of Dr. Falkie that is common to them. The <br />