Laserfiche WebLink
05/11/2001 09:45 F.~1\ <br />Snell &Wilmer <br />L4P. <br />uw ors~a <br />1200 Sevrnranth Saar, Suia 1950 <br />Tabor Centu <br />Denver, Colorado 80202 <br />(303)634-2000 <br />Fax: (303)634.2020 <br />wwwewlawcan <br />Robert D. Comer <br />Associate <br />303-G34-2015 <br />rcomerQswlaw.com <br />III IIIIIIIIIIIIIIII ~o0z <br />999 <br />May 11, 2001 <br />VIA HAND DELNERY AND FACSIMILE TRANSMISSION <br />Cheryl A. Linden, Esq. <br />Robert D. Clazk, Esq. <br />Office of the Attorney General <br />1525 Sherman SVeet, 5th Floor <br />Denver, CO 80203 <br />Re: Eight Fortnightly Report, NOV # CV-2000-010 <br />S&W File No. 38283.0001 <br />Deaz Cheryl and Bob: <br />orr+vatm.aenm <br />exx2mc.uvwn <br />nrrs~Mm~ru <br />aoraa,calaoRwn <br />anrruxsan,urnx <br />Fax: 303-866-3558 <br />Fax: 303-866-5671 <br />This letter constitutes Powderhom's Eight Fortnightly Report pursuant to the Modified <br />NOV. Powderhom appreciates the willingness exhibited by the Colorado Division of Minerals <br />and Geology (DMG) and the Colorado Attorney General to work with Powderhom in seeking to <br />resolve the financial assurance issue created by the federal and state actions against Frontier <br />Insurance Company ("Frontier"). <br />The report contains three parts. Part I identifies the efforts taken by Powderhor during <br />the period between April 27 through May 10, 2001, to obtain a replacement bond. Part II <br />identifies the steps taken by Powderhor during this period to have Frontier obtain or provide an <br />altemative form of financial assurance. Part ll[ identifies other activities undertaken by <br />Powderhom during this period to resolve this matter. <br />Part 1. Efforts To Obtain A New Bond <br />On May 9, 2001, Mr. Spitamiller had a meeting with 3 representatives from Marsh USA, <br />inc. -Drew Bach (SVP-Midwest Surety Practice Leader) Frank Word (VP-Surety Practice <br />Leader) and Sam Robinson (SVP-Marsh Mining Group) - to review the current status and parent <br />bonding requirements. Mazsh reports that the market for reclamation bonds while not closed, is <br />getting tighter. Mazsh is in the process of structuring an altemative concept for combining <br />Snell & Wilmer is a member sA lEk rnur+oi, a IeadinR assxiation d nsdependcnr lav (rtme. <br />