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-. - <br />III IIIIIIIIIIIIIIII <br />999 <br />STATE OF COLORADO <br />Roy Romer, Govei <br />DEPARTMENT OF NATURAL RESOURCES <br />MINED LAND RECLAMATION DIVISION <br />FRED R. BANTA, Director <br />DATE: December 12, 1988 <br />T0: Mike Long <br />FROM: Dan Ftathews <br />RE: La Plata No. 1 Mine <br />Abandoned Site Status <br />The following record of events and Findings of Abandonment should allow us to <br />pursue final reclamation at the La Plata No. 1 Mine without having to write <br />any additional violations or cessation orders, based on my understanding of <br />the recent OS11 rule change concerning abandoned mine sites. <br />History <br />1. In June, 1986, a partnership was formed between three investing oil and <br />gas companies, and a fourth corporation formed by Joe Carpi o. The <br />investing partners were Dugan Production Corporation, Claremont <br />Exploration, Inc. and Flag-Red Fern Oil Company. The corporation formed <br />by Joe Carpio was La Plata Coal Corporation. The partnership acquired <br />the property formerly known as the Peacock Mine, now known as the La <br />Plata No. 1 Mine. <br />2. In June and July, 1987, two cessation orders (-CD-C-87-023 and C-87-030) <br />were issued by the Division to La Plata Coal Corporation for operating <br />without a permit. <br />3. On June 4, 1987, the partnership between La Plata Coal Corporation and <br />the investing partners was dissolved, and notice of the dissolution was <br />provided to the Division on July 20, 1987. <br />4. On July 1, 1987, the investing partners filed an action in La Plata <br />County District Court seeking the appointment of a receiver to take <br />possession of the mine and an injunction preventing La Plata Coal <br />Corporation from operating the mine without regulatory approval, or in a <br />manner detrimental to the interests of the investing partners. <br />5. On July 23, 1987, La Plata Coal Corporation filed for bankruptcy, causing <br />the legal proceedings in Durango to be automatically stayed. <br />6. On November 20, 1987, Permit C-87-072 was issued to La Plata Coal <br />Corporation for the La Plata No. 1 Mine. Operations were commenced <br />shortly after permit issuance, The reclamation bond was deposited as a <br />letter of credit issued by the First National Bank of Florence, Colorado. <br />215 Centennial Building, 1313 Sherman Street Denver, Colorado 80203-2273 Tel. (303) 866-3567 <br />