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~ ~ r. <br />~- ~~ <br />Duane Woodard <br />Attorney General <br />Charles B. Howe <br />Chief Deputy Attorney General <br />Richard H. Forman <br />Solicitor General <br />OF'~p p <br />~~ ~ <br />/e S~^~90 <br />N 1~I~H <br />~ ~a ~~; a <br />Ig qfi <br />Vlir ~ttttr of (~nlaradn <br />DEPARTMENT OF LAW <br />OFFrCE OF THE ATTORNEY GENERAL <br />October 14, 1988 <br />Russell E. Wienecke <br />Claremont Exploration, Inc. <br />P.O. Hox 549 <br />Claremore, Oklahoma 74018 <br />Dear Mr. Wienecke: <br />iii iiiiuiiiiiu iii <br />STATE SERVICES BUILDING <br />7525 Sherman Street <br />Denver, Colorado 80203 <br />Phone 866367 7 8 866-3627 <br />Kra ~ ~ r 1'' ~`_. 3>~~', <br />Q (' T r, I', ~~., <br />This letter outlines the position of the Mined Land Reclamation <br />Division (Division) as to the liability of Dugan Production <br />Corp., Flagg-Redfein Oil Co., and Claremont Exploration, Inc. <br />with respect to mining activities at La Plata Coal Mine. <br />This letter is not intended to control the terms of any settle- <br />ment, such terms shall be controlled by a final agreement. How- <br />ever this letter is a promise to furnish valuable consideration <br />in an attempt to compromise a disputed claim, and is not admissi- <br />ble to prove liability or amount of a claim under CRE 408. <br />Under §7-60-113, C.R.S. (1986), a partnership is liable for any <br />penalty incurred by any partner acting in the ordinary course of <br />the business of the partnership. In addition, under §70-60-135, <br />C.R.S. (1986), the power to bind the partnership continues after <br />the dissolution of the partnership unless notice of the dissolu- <br />tion is given. <br />The relevant events of the mine may be summarized as follows: <br />the partnership was dissolved on June 4, 1987 but no notice of <br />the dissolution was given to the Division until July 20, 1987; <br />between June 23, 1987 and July 14, 1987 La Plata Coal Corp. oper- <br />ated the mine without a permit; two cessation orders were issued <br />by the Division on June 25, 1987 and July 14, 1987 for mining <br />without a permit and for failure to abate such cessation order. <br />Subsequent to the notice of dissolution a permit was granted to <br />La Plata Coal Corp. and additional mining occurred. La Plata <br />Coal Corp. later incurred additional notices of violation. The <br />Board has assessed a penalty in the amount of $13,750 for the two <br />cessations orders issued on June 25 and July 14, 1987. The Board <br />ordered the penalty paid by January 15, 1988, but such payment <br />has not been received. Because the acts upon which this penalty <br />