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III IIIIIIIIIIIIIIII <br />999 <br />The Pittsburg & Midway Coal Mining Co. <br />A Chevron Company <br />6400 South Fiddler's Green Circle, Englewood, CO 80111-4991 <br />Mail Address: P.O. Bor 6518, Englewood, CO 801556518 ~ FAX (3031930-0204 ~ Phone (3031930-3600 <br />Lisa R. Vence <br />Engineering/Environmental Assistant <br />March 2, 1998 <br />Mr. Kent Gorham <br />Colorado Mined Land Recamation Division <br />1313 Shernan Street, Room 214 <br />Denver, Colorado 80203-2273 <br />Re: Certificate of Insurance No. 98-008C <br />Dear Mr. Gorham: <br />Direct Liner (JOJ) 930-4129 <br />Fax: (307) 9J0-4197 <br />E-mai I: Irva®chevron. com <br />RECEIVED <br />MAR 0 3 1996 <br />Division of Minerals & Geology <br />The Office of Surface Mining Reclamation 8 Enforcement (OSM) has questioned the adequacy <br />of The Pittsburg 8 Midway Coal Mining Co.'s (P&M's) liability insurance coverage. The OSM <br />believes that P&M's primary multi-state policy is not sufficient insurance to cover Gaims that may <br />occur at two or more operations. P&M disagrees with the OSM's contention; the Company has <br />always maintained adequate insurance coverage. However, to satisfy the OSM's concerns, P8M <br />has an excess liability policy. <br />Liability insurance coverage of at least $300,000 per occurrence and $500,000 aggregate is <br />required in the states where P&M has operations. P&M's renewed CLI forms have a general <br />liability policy and an excess liability policy. The total liability of these two multi-state policies is <br />$4.5 million per occurrence and $7.5 million aggregate. This should provide overall liability <br />coverage to insure all of P8M's operations. (Note: There is one spare coverage in the event P8M <br />permits a new operation in 1998.) This overall liability coverage will be reflected on the March 1, <br />1998 renewed Certificate of Liability form which your office should receive from March 8 McLennan. <br />Enclosed is a summary of P8M's multi-state operations and the amount of required liability <br />insurance. This information indicates that P8M's multi-state insurance coverage is adequate to <br />comply with regulatory requirements. <br />If you have any questions regarding this information, please contact me at (303) 930-4129. <br />Sincerely, <br />~~ Y <br />~_% ~~~- <br />Lisa R. Vance <br />Enclosures <br />cc: D. Long, Edna Mine <br />J.R. Hinton, Environmental Affairs <br />D.W. Kercheval, Engineering <br />