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To: Ron Cattany <br /> From: J.W. Nugent <br /> Re: Mid-Continent Shut-down <br /> I was contacted today by Mid-Continent Resources, concerning their impending <br /> shut-down. More specifically I was informed that they have ceased to operate <br /> at this date. The cause of the shut-down in their words, "workers compensation <br /> pulled the plug on us," appears to have been the most recent setback in a <br /> continuing accumulation of financial problems. My interpretation on the <br /> reference to workers compensation is that the recent escalation of cost for <br /> workers coverage has proven fatal to an already beleaguered corporation. This <br /> estimate is somewhat confirmed by recent reports, and complaints from <br /> southwestern Colorado concerning compensation cost escalation and corresponding <br /> layoffs. Mid-Continent Resources' Dutch Creek mine is located in west-central <br /> Colorado just west of the town of Red Stone, in Pitkin County. The mine employs <br /> approximately 400 workers, and has produced approximately 490,000 tons of coal <br /> in 1990, valued above $ 9,800,000. This figure is lower than 1989 production <br /> by approximately half. A significant fire incident in august-september further <br /> reduced 1990 output, and weakened an already tenuous financial condition. <br />