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Mr. Joe Carpio - 2 - January 27, 1989 <br />On July 1, 1987, the investing partners filed an action in La Plata County <br />District court seeking appointment of a receiver to take possession of the <br />mine and an injunction preventing La Plata Coal Corporation from operating the <br />mine without regulatory approval. The Durpose of this was to prohibit <br />operations at the site that might be detrimental to the interests of the <br />investing partners. <br />On July 23, 1987, La Plata Coal Corporation filed for bankruptcy. This, in <br />effect, caused the legal proceedings in the District Court to be automatically <br />stayed. Permit C-87-072 was issued to La Plata Coal Corporation by the <br />Division, with the approval of the bankruptcy court on November 20, 1987. <br />Operations began shortly after permit issuance. <br />On January 6, 1988 La Plata's bankruptcy case was dismissed with no action <br />being taken by the court. Following this, the investing partners reinstated <br />their original legal actions in the La Plata District Court. The District <br />Court appointed a receiver for the mine on February 12, 1988 and issued an <br />"Order Establishing Partnership Issues". The Division received notification <br />of temporary cessation from the receiver on February 19, 1988. <br />Notices of Violation C-88-004, 005 and 006 were issued to La Plata Coal <br />Corporation on January 27, 1988. Notice and order to Pay Fixed Penalty for <br />the above NOV's were issued and sent certified mail to La Plata Coal on <br />April 5, 1988. They were returned unclaimed on April 28, 1988. <br />A judicial sale was held on October 6, 1988 at the La Plata County <br />Courthouse. The purpose of the sale was to dispose of all assets of the <br />La Plata Coal Corporation. The mine, including all inventory, equipment, <br />fixtures, leases, mineral interests, real properties, permits, licenses, maps <br />and personal property associated with operation and maintenance of the mine <br />was exposed to sale at public auction. Most of the equipment and structures <br />were sold but the real property, leases, mineral interests and permits were <br />not sold. Since this date all certified mailings to La Plata Coal Corporation <br />have been returned as undeliverable to the Division. <br />In addition, there is no one the Division can contact who has maintenance <br />responsibility for the site. As mentioned above there remain unabated <br />violations at the site and unpaid civil penalties. All indications are that <br />the site has been abandoned, with no indication that the responsible party <br />intends to reclaim the site. <br />As indicated in the enclosed Show Cause Order, this matter will be scheduled <br />fora formal hearing before the Mined Land Reclamation Board. In addition to <br />permit revocation consideration, the Division will pursue forfeiture of the <br />reclamation bond at the formal hearing. It will be scheduled for the <br />March, 1989 Board meeting. We will notify you at least 30 days prior to the <br />hearing of the date, time and location. <br /> <br />