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iii iiiiiiiiiii-i~i~ <br />August 17, 2001 <br />INTRAOFFICE MEMORANDUM <br />TO: Bob Clark <br />Assistant AG <br />Business and Licensing Section <br />FROM: Cheryl A. Linden <br />First Assistant Attorney General <br />Natural Resources and Environment Section <br />RE: Lodestar Energy -Bar date for proof of claim <br />Bob, as I mentioned to you in a May 18 email and a May 31, 2001 memo, Lodestaz <br />Energy holds two coal permits from DMG with the bonds for these sites being cash bonds. <br />Lodestar petitioned in bankruptcy in the Eastern District of Kentucky. The bankruptcy court has <br />set a bar date for the filing of proofs of claim for October 9, 2001. The Proof of Claim form <br />is attached to this memo: The following is the latest information I have from Dan Mathews <br />concerning cost estimates for conducting reclamation and the amounts of reclamation bonds held <br />by DMG. <br />Lodestar's Munger Mine just went through amid-term permit review. A technical <br />revision was approved. Including the cost of the TR, the cost estimate for reclamation went from <br />$172,923 to $175,596. The Division presently holds a reclamation bond in the form of a cash <br />bond in the amount of $172,923. On August 11, 2001, the Division sent a letter to Lodestar <br />requesting a response to the increase in liability. Lodestaz has until August 28`h to respond. <br />The McClane mine permit recently underwent a permit renewal process. As of July <br />2001, the cost estimate for reclamation is $271,563. The Division currently holds a cash bond in <br />this amount. There is an outstanding issue from the renewal process for this mine. A revision <br />needs to be submitted concerning mine waste removal or disposal. Appazently there is little <br />room at this site to store mine waste. Given that the mine is again operational, the operator must <br />address where mine waste will be stored or disposed of Lodestar was to address this issue by <br />August 15, 2001. Dan has not yet seen any response from Lodestaz on this issue. <br />As a reminder, I will be out of the office in September. If you need additional <br />information on how to advise the Division of what steps it must take to protect its interests or on <br />whether DMG should file a proof of claim, please contact Steve Brown here a[ the AG's Office <br />at 866-4434 or Dan Mathews at 970-242-5025. Dan's immediate supervisor in Denver is Sandy <br />Brown at 866-4927. <br />cc: Sandy Brown, DMG <br />Dan Mathews, DMG <br />S/xuc bio.vr~ 092 w'a, ,y~i,.~-~f <br />