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. , .-. ,~ Mined Land Reclamation Division August 26, 1987 Page d rQ eviousiy scheduled. dat4-of -.7uly -23,--.1987. 4n Jply~'+rd_p].ain-_ tiffs appeased-in court prepared to seek a prfliiminary_injunction, pending the determination, of.sll issues before_the oouxt and the appointment ~of ~a_.rege~v~~..v>; ell.gartner.@h`lp_..poper~y; Mike savage, 5enlor~Reclamation Specialist with l4LRD, waa f10Wn down by plaintiffs to testify at the July 23rd hearing only to be met with notice approximately one hour prior to the scheduled time for the hearing that La Plata Coal Corporation had filed a petition in bankruptcy under Chapter 11 of the Eankruptcy Code. The proceedings before the court wore severely affected by the bankruptcy filing and plaintiffs were successful only in obtain- ing an order restraining individual defendants in the aotion, Carpio and Sydenatzicker, until further hearing could be scheduled for the purpose of consideration of the automatic stay incident to bankruptcy filings. Subsequent hearing wae_ conducted._.Wl July_ 27, 1987_, resultlng_in the courts order recognizing .the_~utom@L14_gtay_anQ_forecloeing any-further"action before She Dia~rict._CQ~xt- Df._La._Pls~~~oyp-~- This order wee'further directed to the individual defendants, Carpio and Sydenatricker, by reason of the fact that individual bankruptcy filings were made by Carpio and Sydenetsioksx on July 27, 19 b7. It is interesting to note the provisicn of 2 CCR 407-1 Regulation 5.03.7(4) which states: 'Unless caused by lack of diligence, inability to comply may be considered only in mitigation of the amount of c1vi1 penalty under 5.04 and of the duration of the suspension of a permit under 5.03.3(3)(b) or 5.03.5(4)(c)." The essence of the position of the plaintiffs ie en inability to control the actions of Joe Carpio and La Plata Coal corporation. Plaintiffs further feel thst the activities of Carpio and La Plata Coal Corporation were grossly misrepresented to them, resulting in violations committed without their knowledge. Sign;ficant effort and expense is evidenced by the actions of plaintiffs outlined above and of critical importance is the total lack of culpability on the part of plaintiff6 demonstrated by the factual circumstances surrounding the subject violations. Plaintiffs havd suffered severe economic injury ae a direct result of the actions of Carpio in dissolution of the partnership and are intent upon making every effort to comply with the regulatory authority of MLRD.