ENFORCE33392

• Permit No: C1987072
• IBM Index Class Name: Enforcement
• Doc Date: 12/30/1991
• Doc Name: MLRD V DUGAN PRODUCTION CORP ET AL 91 CV 221
• From: DEPT OF LAW
• To: BJ FETT
• Violation No.: CV0000000
• Media Type: D
• Archive: No

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Gale A. Norton
Attorney General
Raymond T. Slaughter
Chief Deputy Attorney General
Timothy M. Tymkovich
Solicitor General
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DEPARTMENT OF LAW
OFFICE OF TXE ATTORNEY GENERAL
December 24, 1991
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1 t 0 16th Street - 10th Floor
Denver. Colorado 80202
Phone 620-x500
FAX [phone]
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DEC 3 0 1991
Mined Land
B. s. Fett, Esq. Reclamation D~"~^`"
105 E. Vermijo
Suite 600
Colorado Springs, Colorado 80903
RE: Mined Land Reclamation Division v. Dugan Production Corp.,
et al., 91 CV 221
Dear Mr. Fett:
This is to clarify the position of the MLRD with respect to the
La Plata County District Court action and the November 26 assess-
ment conference concerning the enforcement action initiated by
the MLRD.
The First National Bank of Florence ("the Bank") has assumed the
obligation to reclaim the coal mine previously operated by La
Plata Coal Corporation in lieu of providing the MLRD with the
proceeds of a letter of credit drawn on the Bank. By assuming
the reclamation obligation, the Bank also assumed the obligation
to maintain the site in compliance with all applicable regulatory
requirements pending final reclamation. The Bank has encountered
a problem with the reclamation of the site because Mr. Strohecker
and Dugan Production both have possible claims to the ownership
of a large conveyor located on the site. The MLRD, through this
office, offered to assist the Bank by filing an action in La
Plata County District Court for an appropriate declaratory order
concerning title to the conveyor. The MLRD filed the action in
an effort to cooperate with the Bank and to achieve timely recla-
mation of the site.
Since the filing of the action both Mr. Strohecker and Dugan Pro-
duction Corp. have agreed to give up any claims they may have to
the conveyor. Furthermore, Mr. Strohecker has agreed that he
will remove the conveyor, at no expense to the Bank, if Dugan
agrees to convey its interest in the conveyor to him. Such an
arrangement would appear to be beneficial to all parties. The
MLRD has no objection to such an arrangement and will draft an
appropriate settlement agreement upon your concurrence to such a
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