Laserfiche WebLink
<br />Community lit - Page 2 <br />extraction of locatable grade limestone and that the operation's validity was <br />always maintained solely on the sales of locatable grade limestone for <br />qualifying end-uses. This situation was closely monitored by this office and <br />was held to be in compliance until the quarry ceased operation earlier this <br />year. <br />As you may be aware from the newspapers, Mid-Continent Resources' Coel Basin <br />Mines Complex ceased operation in January 1991, for lack of operating cash. <br />UnaDl• to roctify the insolvency, the company filed for bankruptcy in <br />July 1992. lollowinq the bankruptcy the State directed Mid-Continent to <br />proceed with reclamation of the Coal Basin Mines •ite; thi^ wa• to be <br />initially financed by salvage oparation• conducted concurrently. Frustrated <br />by the •low pace •e which thi• pay-as-you-qo work wa• proceeding, the Stat• i• <br />nor set to foreclose on the company's reclamation bond, which i• secured by • <br />deed to the company's Carbondale rock duet plant. <br />'jhi• office i• very concerned as to th• State's pending disposal of the <br />Carbondale rock dust plant. For the State to recover even a fraction of the <br />stated bond value of this property ($3 million) it i^ •ssantial that the plant <br />ba marketed for its highest and best use - this being as a rock dust plant in <br />it^ current location. For that to be the case the buyer rill need a secure <br />•ourc• o! •uitabl• quality limestone in the immediate vicinity of the plant. <br />The only such source is the Glenwood Springs limestone quarry lorarrly <br />operated by Mid-Continent. <br />A• of Auquat 31, 1993, the claimant CFGI Corporation abandoned •11 its lode <br />claims Ln and around the Glenwood Spzinq• quarry ineludinq the 13 lode ^ininq <br />claims noted above. Mhil• the operation Ls still under valid stets sine <br />persit, the operator no longer has an exelusiw right tararde the extraction <br />and reswval al the locatable grata limestone. 1N believe that the abandonment <br />of the elates L^ tied to the fact that Mid-Continent i• neither operating the <br />rock dust plant nor has any other qualifying surket• for the limestone. Mhil• <br />several non-qualifying market^ eontinu• to exist for the limestone, these can <br />not be pursued by Nid-Continent without aintaininq the elaaas and <br />establishing their validity ehrough qualifying end-use type sales. <br />The current situation of the limestone quarry sits i• ripe for potential abuse <br />should sininq claims be relocated by another entity rhieh i^ unconcerned with <br />the future operation of the Carbondale plant. This could be sianifested by the <br />eras being relocated for the purpose of blocking future operations at the <br />site. this mould of course ereaiendously devalue the Carbondale rock dust <br />plant. 2n addition, on-going surface protection and reclamation sieasures <br />would be put on hold until final settlement of the bankruptcy is co~pletsd. <br />To prevent this possible outcome end remain in a position in which the State's <br />interests as well es the public's can be met, this office has chosen to <br />establish the community pit on the quarry site to establish a senior right to <br />any •ubsequ ant mining elaim• location that may occur. In summary, the <br />rationale for establishing this community pit is: <br />1. Th• euietinq limestone quarry was substantiated vn a qualifying end <br />use for the Carbondale rock duet plant in connection with the Coal Basin <br />Minas Complex, all operated by Nid-Continent Resources. Nid-Continent <br />has closed all three operations, filed bankruptcy, and has abandoned its <br />claims covering the limestone quarry. Any new claim or relocation may <br />not currently meet the atandarde for locatable grads mineral materials. <br />Any new elaime could daisy or make a lien on [he quarry preventing any <br />use or ongoing surface protection and interim reclamation. <br />