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<br />Machinery and Equipment. The Lenders contend that all of <br />Machinery and Equipment is encumbered with their various liens <br />and that their interest in the Machinery and Equipment is <br />superior to that of any other party, including Creditor <br />Colorado Division of Minerals and Geology. <br />The Lenders are not entitled to the relief they seek. <br />First, under, inter alia., 28 U.S.C. 6 959(b), the Debtor <br />Powderhorn is required to comply with reclamation and <br />environmental remediation statutes and regulations, and the <br />proceeds of the sale of the Machinery and Equipment are <br />necessary for the Debtor Powderhorn to fulfill its reclamation <br />and environmental remediation obligations. <br />Second, the Debtor Powderhorn needs the proceeds of the <br />sale of the Machinery and Equipment to fund the reclamation. <br />The reclamation will render the Debtor Powderhorn's real <br />estate, which is also encumbered with the Lenders' lien, <br />salable. Therefore, using the Machinery and Equipment <br />proceeds to clean up the real estate constitutes a reasonable <br />and necessary cost of preserving and disposing of the real <br />Creditor Colorado Division of Minerals and Geology has not yet filed a proof <br />of claim. Once it does, the Proofs of Claim in Case Nos. 00-51389 and 00- <br />51385 will probably list the claim as contingent and unliquidated. <br />4 <br />