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FROH :NFITURFIL RESOURCES 6EC • 303 e66 3559 ~ 04-26 16:58 if062 P.03/08 <br />James B. Holden <br />Page 2 <br />Under Rule 1.13.5, 2 CCR 407, if an operator ceases <br />production of the mining operation for 180 days or more, the <br />operator is required to file a Notice of Temporary Cessation. <br />The notice must specify several items, including the reason for <br />the cessation, a plan for resumption of mining, and a <br />demonstration that the existing financial warranty is adequate to <br />cover the reclamation liability. <br />In light of the inactive status of both the Marblehead <br />Quarry and the Mid-Continent Quarry, please find enclosed two <br />letters by the Division requesting information from Resources <br />regarding the status of these sites. <br />in addition, the Division seeks a clarification of the <br />amount owed under the liquidation plan in regard to the Mid- <br />Continent Quarry. The Division files show that there were two <br />deeds of trust to secure the reclamation obligation on this <br />quarry. The first deed of trust was to the Carbondale Industrial <br />Park in the amount of $7,000. The liquidation plan specifically <br />mentioned this deed and amount and the Division has already <br />received the $7,000. <br />The Division files also show, however, that the amount of <br />the bond for the Mid-Continent Quarry was increased by about <br />$6,200 and that the increase was secured by a deed of trust to <br />the rockdust plant (which also secured the reclamation obligation <br />of the coal mine). The liquidation plan makes no mention of this <br />deed of trust. The plan merely states that the Division is to <br />receive the proceeds from the rockdust plant. <br />Is it your understanding of the liquidation plan that the <br />$6,200 of the bond secured by the deed of trust for this quarry <br />be paid from the proceeds of the rockdust plant? Please advise <br />in writing. If this money is not to come out of the rockdust <br />proceeds, Resources may need to post an additional bond in order <br />to keep this permit active. <br />Lastly, I have previously requested an explanation of the <br />post- and pre-effective date expenses which the Creditors' <br />Trustee is crediting against reclamation funds. I have also <br />raised with you the issue of the trustee giving full credit of <br />$500,000 for M&E work which has not yet been completed. I am <br />again requesting that an explanation of the expenses and a <br />response to the Division's objection to the M&E credit. <br />Pursuant our conversation of April 26, 1996, you are aware <br />of the meeting that I am attending with the BLM and Mid-Continent <br />on Monday, April 29, 1996, concerning the quarries issues; you <br />have authorized me to talk to your client about these issues. <br />Thank you for your attention to this matter_ <br />