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• <br />Minutes, July 22-24, 1992 <br />b RAT <br />Subject To Board Approval <br />operator, including the establishment of preliminary sales agreements, <br />due diligence, etc., the Board agreed to postpone revocation. The <br />Board did this in order to allow the operator time to complete the sale <br />of the mine which would have resolved the potentially inadequate surety <br />issue. <br />The Director said that on Monday, July 20, 1992, the Di~iision was <br />informed that Geneva Steel had rescinded its offer to purchase the <br />mine, and, therefore, the operator remains in bankruptcy. He said that <br />at that time, the Division informed the operator that they needed to <br />begin implementing the Agreement immediately, i.e., commence <br />reclamation, and that the operator agreed. <br />The Director- said the Division still holds the rock dust plant <br />facility, as a bond for the site. He said the oper.tor feels <br />additional reclamation funds could be obtained, based on the salvage <br />value of structures at the site. The Director said the Division will <br />meet with the operator in the next couple of weeks, in order to <br />determine a manner in which to resolve this matter. The Di~~ision will <br />provide further information to the Board during its August 192 Meeting. <br />The Director said that at this point the Division would need to sell <br />the rock dust plant, if the operator's bond was forfeited, ,ind resolve <br />the matter of the pending Show Cause Order. <br />In response to an inquiry from the Board, the Director explained that <br />the equipment the operator planned to sell included the long wall, <br />conveyor systems, the wash plant, as well as other item; from the <br />mine. He clarified that the rock dust plant is separate• from the <br />mine. Mr. Frank Johnson, Assistant Attorney General, said that <br />although claims have been made by the operator, it is inclear how <br />additional reclamation funds will be raised through bankruptcy <br />proceedings, i.e., over and above the operator's other debts and liens. <br />The Board stated a concern that an inventory of the rock dust plant be <br />completed as soon as possible, in order to determine the Division's <br />total assets at the facility. During further discussion of the matter, <br />the Director informed the Board that a bankruptcy expert hac been hired <br />through the Attorney General's Office to handle this matter on behalf <br />of the Division. <br />Mr. Johnson said the Division would initiate proceedings ':o sell the <br />rock dust plant by trying to locate a purchaser, and, in tte meantime, <br />the operator will commence reclamation activities. The Director said <br />that an environmental audit will also be conducted at the site. In <br />response to an inquiry from the Board, Mr. Johnson said the operator's <br />bankruptcy counsel said that Geneva Steel decided it would not be <br />economically feasible to purchase the mine. <br />