ENFORCE26849

• Permit No: C1987072
• IBM Index Class Name: Enforcement
• Doc Date: 9/15/1988
• Doc Name: LA PLATA COAL CORP
• From: CLAREMONT EXPLORATION INC
• To: MLRD
• Violation No.: CV0000000
• Media Type: D
• Archive: No

Page 2
- O n June 4, 1987, after growing dissension between the
investing partners and La Plata Coal Corporation resulting from
La Plata Coal Corporation's failure to adhere to the terms of the
partnership agreement, La Plata Coal Corporation by letter to
each c•f the investing partners and by published notice unilaterally
dissolved the partnership and excluded the investing partners from
the mine. (See Exhibit A, Exhibit F and Exhibit G, attached.)
- On July 1, 1987, the investing partners filed an action
in the District Court of La Plata County, Colorado, seeking among
other remedies:
- The appointment of a receiver to take possession
of the mine; and,
- An injunction preventing La Plata Coal Corporation
from operating the mine in contravention of
governmental regulations or in a manner detrimental
to the interests of the investing partners.
- On July 23, 1987, La Plata Coal Corporation filed a
petition in bankruptcy, causing the legal proceedings in
Durango to be automatically stayed.
- On November 20, 1987, while La Plata Coal Corporation
was still subject to the jurisdiction of the bankruptcy court,
MLRD issued Permit C-87-072 to La Plata Coal Corporation.
The permit was issued despite the objections of the investing
partners. The required reclamation bond was deposited in the
form of a Letter of Credit issued by First National Bank of
Florence, Colorado.
- O n January 6, 1988, and upon the motion of the
investing partners, the bankruptcy case was dismissed.
- On February 12, 1988, the La Plata County District
Court entered an order -- "Order Establishing Partnership
Issues" -- conclusively establishing the existence and
dissolution of The Coal Mine Partnership, all as set out above.
The receiver appointed by the Court was authorized to seek a
transfer of Permit C-87-072, but did not because the only course
of action authorized by the laws of the State of Colorado was the
winding up of the partnership affairs. (See Exhibit A, attached.)
- On May 3, 1988, the La Plata County District Court
discharged the receiver and appointed the investing partners as
the liquidating partners for the sole purpose of winding up the
affairs of the partnership. (See Exhibit H, attached.)
- A judicial sale of the partnership assets is scheduled
for October 6, 1988, after which the partnership will be completely
liquidated and cease to exist.