COLORADO REGULATORY PROGRAM
RULES AND REGULATIONS OF THE COLORADO MINED LAND RECLAMATION BOARD
PURSUANT TO THE COLORADO SURFACE COAL MINING RECLAMATION ACT

RULE 8    MINE SUBSIDENCE PROTECTION PROGRAM
8.01      Scope
8.02      Homeowner Participation
     8.02.1 Eligibility Requirements
     8.02.2 Participation Requirements
     8.02.3 Participation In Good Standing
     8.02.4 Participation Benefits
8.03      Events and Consequences Eligible for Benefits
8.04      Notice, Acceptance and Payment of Benefits
     8.04.1 Notice of Claim for Benefit
     8.04.2 Acceptance or Notice of Dispute of Claims for Benefit
     8.04.3 Payment of Benefits

NB: Numbers in parentheses at the end of a section refer to Statutory authority for these Rules (e.g., "(111(2))"
refers to Section 34-33-111(2) of the Colorado Surface Coal Mining Reclamation Act, Article 33 of Title 34, as
amended, (House Bill 1223/1979 Session Laws) Colorado Revised Statutes).

ALSO NOTE: Cross references to OSM's federal statute and regulations appear in double braces to the right of the
Colorado statute or regulation section numbers, e.g., "1.04  DEFINITIONS        {{ 30 CFR 701.5 }}".  
The cross references were compiled using the preambles to OSM's approval of amendments to the Colorado
regulatory program published in the Federal Register and from the COALEX Library in LexisNexis.

8.01      SCOPE
This rule provides the detailed specifications for carrying out the Colorado Mine Subsidence Protection Program 
(the Program). This rule includes the Colorado Mine Subsidence Protection Trust Agreement. Additional matters, 
such as: the eligibility of structures and property for coverage and exclusions from coverage under the Program; 
benefit limits for participating homeowners; costs of participation in the program; and, procedures for resolving 
disputes which may arise are also addressed in this rule. The Colorado Mine Subsidence Protection Trust 
Agreement, Appendix A to this rule, provides the overall framework and basis for funding the Program. 

8.02      HOMEOWNER PARTICIPATION
8.02.1    Eligibility Requirements
Participation shall be limited to privately owned residential structures of one to six units which have been 
constructed on eligible lands pursuant to an approved building permit dated on or before February 22, 1989. Eligible 
lands means lands that are eligible for reclamation funding under Section 404 of the Federal Surface Mining Control 
and Reclamation Act of 1977 (30 USC Sec. 1234). 

8.02.2    Participation Requirements 
Applicants for participation shall have their residential structures and surrounding property inspected and 
photographed by a company designated by the Plan Administrator. The cost of the inspection shall be paid by the 
applicant. The applicant must submit a signed statement certifying the applicant's agreement with the inspection 
report as stated. The statement shall also certify that the applicant understands that pre-existing conditions are not 
eligible for benefits. Finally, the statement shall warrant that the homeowner applicant knows of no material        
pre-existing damage, other than that contained in the report. If the inspection report contains recommendations for 
repairing pre-existing damage, the Plan Administrator may require compliance with those recommendations and a 
subsequent reinspection before the applicant is granted participation status. In the event of extensive pre-existing 
damage, the Plan Administrator may deny the applicant participation status. The participant will receive a Notice of 
Participation from the Plan Administrator, after having signed the warranty and paid the invoice for the first annual 
administrative fee. The administrative fee shall be $35.00 per year. 

8.02.3    Participation In Good Standing
An applicant shall be considered a participant in good standing once all requirements in 8.02.2 are fulfilled. 
Delinquency of more than 30 days in payment of the annual administrative fee shall result in suspension of 
participation status. Subsidence events that occur during a period of suspension will not be covered by the Program. 
Delinquency of more than 90 days in payment of the annual administrative fee shall result in expulsion from the 
Program. Re-admittance upon expulsion will require a reinspection of the homeowner's residential structure and 
property at the expense of the homeowner. The expelled participant may petition the Board for a waiver of the 
reinspection requirement. The Board reserves the right to accept or deny such petitioners. Sale or transfer of the 
property shall dissolve the participation agreement unless a Notice of Transfer is filed with the Plan Administrator. If 
Notice of Transfer is filed within 90 days of such transfer or sale, coverage under the program shall continue without 
interruption. A fee of $35.00 shall be included with such Notice of Transfer. 

8.02.4    Participation Benefits 
Participation in the Program shall permit the participant to petition the Program for benefits from the Mine 
Subsidence Trust Fund through the Plan Administrator in the event of an eligible mine subsidence event. Benefits 
under this rule are subject to the terms of the Colorado Coal Mine Subsidence Trust Fund, Appendix A, and to the 
sufficiency of the fund. Beneficiaries may receive a maximum of $50,000 per occurrence subject to a $1,000 per 
occurrence deductible, or a maximum cumulative benefit due to subsequent subsidence events equivalent to the fair 
market value of the eligible property prior to subsidence. Maximum benefit and deductible amounts in effect from 
time to time shall be subject to modification and approval by the Board following formal public hearings and official 
revision of this rule. Benefits shall be used to repair the structure and shall be determined pursuant to Rule 8.04.3

8.03      EVENTS AND CONSEQUENCES ELIGIBLE FOR BENEFITS
The term "mine subsidence" as used in the Program means lateral or vertical ground movement resulting from the 
collapse of man-made underground coal mines, which directly damages any dwelling, building or fixture 
permanently affixed to realty. Collapse of any other kind of mine is not "mine subsidence." Ground movement 
resulting from any other cause is not "mine subsidence." Benefits from the trust shall not supersede or duplicate any 
collectible insurance. Participants shall pursue any collectible insurance before benefits are determined. The amount 
of the benefit paid under the Trust shall be reduced by the amount of recovery on any other such insurance. Damage 
to residential structures resulting from perils similar to subsidence, such as swelling or collapsing soils or damage 
primarily due to inappropriate structural design or construction shall not be covered by the program. The Program, 
funded through the Trust, shall provide benefits to participants in Colorado against damage to their structures caused 
by mine subsidence as described above. The term "structure" in this rule means any dwelling, residential building, 
appurtenant structure, including detached garages, breezeways, and carports, or fixture permanently affixed to realty, 
including its basements, footings, foundations, septic systems and underground pipes directly servicing the dwelling 
or building. The term structure does not include such items as landscaping or earth retaining structures, driveways, 
walkways or outdoor pools. Payments for subsidence damages caused by all active mining, mines abandoned or 
inadequately reclaimed after August 3, 1977, and non-coal mining are specifically excluded under the Program. A 
participant aggrieved by a determination of the Division or the Plan Administrator concerning the proximate cause of 
damage, the amount of benefit appropriate to particular subsidence damages, or related issues, may petition the 
Board for review of the determination, pursuant to Rule 8.04.2. Decisions of the Board shall be subject to judicial 
review pursuant to '24-4-106, C.R.S. (1984). 

8.04      NOTICE, ACCEPTANCE AND PAYMENT OF BENEFITS 
8.04.1    Notice of Claim for Benefit 
A participant in the Program shall notify the Plan Administrator of an event giving rise to a claim within 90 days of 
the subsidence event. Except for good cause, no payments shall be made if such notice is not given. 

8.04.2    Acceptance or Notice of Dispute of Claims for Benefit 
The Plan Administrator shall determine whether an event is eligible for benefits. The participant may dispute the 
determination by submitting a written notice of dispute with any evidence in support of the dispute to the Board 
within 30 days of the determination. Appeals will be considered as soon as practicable by the Board. 

8.04.3    Payment of Benefits 
The Plan Administrator shall communicate to the participant the amount of the benefit. The Plan Administrator shall 
provide the participant with an estimate of the cost of repairs. Payment of the benefit shall be made to the participant 
upon completion of necessary repairs in a good and workmanlike fashion. The amount of benefits shall not exceed 
the actual cost of repairs minus the $1,000.00 deductible. In the event that subsidence is on-going, final repairs may 
be delayed until the event has ceased. Any necessary work to minimize such on-going subsidence shall also be 
covered. This section shall be subject to amendment by the Board. This section shall not apply to any subsidence 
event that occurs after such amendment.