ENFORCE32908

• Permit No: C1981013
• IBM Index Class Name: Enforcement
• Doc Date: 5/6/1994
• From: BASIN RESOURCES INC
• To: DEWEY & ELLEN ANDERSON
• Violation No.: TD1993020370005TV3
• Media Type: D
• Archive: No

• Page two
Because of Basin's concerns about the information made available to
purchasers, we have reviewed property records relating to Rancho
Escondido. The information we have seen allowed us to piece together the
following history. We stress that there may be other information we have
not seen which fills in some of the details, or which could change our
perspective on this background. Beginning in 1981, the Picketwire Ranch
Partnership, d/b/a Rancho Escondido, imposed restrictive covenants upon
the Rancho Escondido lots [recorded July 9, 1981 in Las Animas County
Records at Book 813, Page 412], which expressly required current and
future Rancho Escondido property owners to notify prospective purchasers
that the properties were subject to Special Use Permit #75-025 and
underground coal mining operations, and that the owner of the coal had
rights of ingress and egress. In May, 1988, in accordance with law,
Basin provided notice of impending underground mining to the record owner
of the Rancho Escondido property at that time.
In late 1991, the Rancho Escondido properties underwent foreclosure,
and the Public Trustee of the County of Las Animas conveyed the unsold
properties to Trinidad National Bank, which in turn conveyed them to Mr.
Charles Baldwin. In 1992, Mr. Baldwin deeded the Rancho Escondido
properties to Raton West-Baldwin, Ltd. and filed a new set of restrictive
covenants for the properties which fail to mention underground mining
operations [recorded Jan. 30, 1992 in Las Animas County Records at Book
584, Page 943, Reception No. 594902]. Shortly thereafter, in March on
• 1992, Mr. Baldwin, on behalf of the Rancho Escondido Property Owners
Association, filed a resolution to vacate the 1981 restrictive covenants
which had required disclosure to prospective purchasers.
In 1993, lot sales accelerated, and Basin learned that certain
purchasers were not told about the mining. Basin took additional steps
to ensure that current and prospective landowners have notice of our
mining rights and plans. We already had filed a specific notice of
mining operations in Las Animas County records. We notified the firm
that was marketing the Rancho Escondido lots of the mining plans in late
summer, 1993. We also requested that the Colorado Real Estate Commission
require Raton West to update its disclosure statements to prospective
purchasers and lot owners.
Our request resulted in Raton West significantly revising its
disclosure practices to prospective purchasers. However, the Real Estate
Commission informed us that it had determined not to require Raton West
to send new disclosure documents to prior purchasers. We disagreed with
that decision, but there was nothing we could do to change it. If you
have questions about these disclosures, you may contact the Colorado Real
Estate Commission at [phone].
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