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.:~ l S HICKORY COAL CORPORATION Mr. James H. Moncrief Director, Tulsa Field Office August 31, 1978 Office of Surface Mining Page 2 of 3 - On March 30, 1987, La Plata was issued a cessation order by OSM (CO 87-2-244-1). Upon learning of the issuance of the cessation order, the investors for the first time became directly involved in the project and they established a development plan making abatement of the CO (and of certain ~A1SHA violations) and issuance of the permit the first priority for La Plata. (See Exhibit B attached) The efforts of the investors, however, resulted in growing dissension between them and La Plata. - On June 4, 1987, after numerous attempts by the investors to implement the development plan, La Plata unilaterally dissolved a nd terminated the partner- ship and excluded the investors from the mine. (See Exhibits C and D attached) - In June 1987, MLRD issued a cessation order against La Plata. (CO-87-023) - On July 1, 1987, the investors filed suit in the District Court of La Plata County, Colorado, seeking among other remedies: - Appointment of a Receiver, to take possession of the mine; and, - Injunctive Relief, to prevent La Plata from operating the mine in contravention of governmental regulations and in a manner detrimental to the investors. (See Exhibit E attached) At a hearing on July 1, 1967, for temporary relief requested by t he investors, La Plata represented to the court that the mining permit to abate both the OSM CO and the MLRD CO had been issued and the Court issued an order leaving La Plata in control of the mine. (See Exhibit F attached) The issuance of this order foreclosed any fur ther direct action by the investors. - On July, 1987, the investors filed a Motion for Contempt Citation on various grounds, includinc+ the failure of La Plata to obtain the necessary permitting. (See Exhibits G and H attached) - On July 14, 1987, MLRD issued another cessation order to La Plata. (CO-87-030) - On July 16, 1987, the investors renewed the request for a temporary restraining order and for the appointment of a receiver for the property. This motion was grounded in major part on the misrepresentations by Carpio on behalf of La Plata to both the investors and the Court about the issuance of the mining permit and the abatement of the cessation orders. (See Exhibits H and attached)