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6. On April 2, 3997 Trinidad tiled a Request for Payment oC <br />Adminlctrative Expense alleging that certain bulldoz inq actly It tea <br />conducted by the CiY Trustee's contractor pursuant to the Trustee's <br />respons16111t1es in connection vtth closing the Asset purchase <br />Agreement uncovered end disturbed certain ueatl locomotive oil <br />(filters snd other waste products fn a Cte ld near the CiY roundhouse <br />and ang lne ma lntenance facility Car the Southern Division. <br />Trinidad alleged that it incurred in itisl expend iturae of 510,000 <br />in connec[San with the retention of Spec Sal Resource management <br />(•BRM•) to perform a site invest Sgatlon and find Stated that Trinidad <br />would amend 1te request once the total coat to invest igste, <br />stabillre and clean up the ^!te vas determined. <br />7. Although the Civ denied responalb111ty for the clean up, <br />Civ rate fined Fl1M-Rocky Mountain, Inc. (•EA31•) to par[orr an <br />Independent environmental ava luatlon. <br />e. Based on the BRM ava luatlon and the costa Sncurred by <br />Tr1nLOad !n connection therewith, Trln Sdad not l[led the CiY by <br />letter dated Bepteelxr 77, 199] that Trln ldad ve^ seeking up to <br />epproxlwte ly 5~5, 000 !n clean-up costs plum coat ra Smbureement Sn <br />excess of 517,000, approximately $67,000 in tas aggragete. <br />9. Bawd on tM ERm eve luatlon, tM CiY 1»1Lvee that the <br />clean up could be conducted Cor approximately 571,000, although <br />Trio idad believse subsequent testing and remediatfan requlresants <br />may sauce this smount to increase aubetant sally. <br />10. Tae dltferencas between CRa 6AM and I77M svaluatlone <br />primarily related to the elternatlve methods available as wall se <br />the volume of work necessary to resolve tae environmental problems. <br />In addition a number of legal Issues exit[ relating to the <br />interpretation and application of the Asset Purcha ee Agreement and <br />the parties duties snd reaponsi6il It las thereunder, <br />11. GSven the number o[ [actual end legal issues Involved as <br />va 11 ae the conelde table coat to lit Sgata these issues, <br />represantat Sues oC the CLY and Trln ldad mat to determine i[ the <br />dleputee could be resolved short o[ litigation. <br />12. In order to avo Sd the time, axpenee end uncer[alntles o[ <br />lit lgatlon end to sett to the dispute between them, CiY end Trinidad <br />entered in a Settlement Agreement and Release, a copy o[ vh fish Ss <br />attached hereto as Exh ihlt •A•. <br />17. Tha Battlement Agreement anO Release provldee generally <br />thst (ij Che Admin Satratlve claim of Trinidad shall ba reduced and <br />allowed in Cae amount of 577,000, (11) that Tr In ldad will ba <br />responsible for ell tamed letlon et the subject dleposal site, (iii) <br />the[ C1Y and Trinidad ra Lea se each other and related entitles from <br />all causes o[ actlone, claims etc. erl slog out of or related to the <br />disposal acilvltlu at[yet/nq the ^ubl eat dlepoeel cite or arising <br />out o[ or related to the rewdlatlon, e,d (lv) that the Battlement <br />Agreement and Re lases 1^ subject to Court Approval. <br />1~. The CLY haw inq analyzed end considered Na tactual end <br />legal iswu that ex let end the tlw, expanse end uncertalntiea oC <br />lit lgatlon to ^att la the disputes ha^ determined Sn its buslnes^ <br />judgment that enteclnq Into the Battlement Agreement end Raleaea le <br />in the beet interest o[ the eetsta and Sts cred ltors. <br />3 a <br />