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STATE OF COLORADO ROY ROMER, 3ovemor <br /> Geological Survey <br /> DEPARTMENT OF NATURAL RESOURCES Board of Land Commissioners <br /> Mined Land Reclamation <br /> Ken Salazar, Executive Director Division of Mines <br /> 1313 Sherman St., Room 718, Denver,Colorado 80203 866-331 1 oil and Gas Conservation Comm,ssio, <br /> Division of Parks& Outdoor Recreat, <br /> Soil Conservation Board <br /> Water Conservation Board <br /> V Division of Water Resources <br /> Division of Wildlife <br /> M E M O R A N D U M <br /> TO: Governor Roy Romer <br /> Ken Salazar <br /> FROM: Ron Cattany (\ tit <br /> DATE: January 25, 1991 <br /> SUBJECT: POSSIBLE MID-CONTINENT MINE SHUTDOWN -- <br /> GARFIELD/PITKIN COUNTIES <br /> Joe Nugent, Chief Mine Inspector, was unofficially contacted <br /> today by Mid-Continent Resources concerning their impending <br /> shutdown. They have implied that they are ceasing to operate <br /> today. The immediate cause, in their words, is that "workers <br /> compensation pulled the plug on us. " This is the most recent <br /> setback in a continuing accumulation of financial problems. The <br /> recent escalation of cost for workers coverage has proven fatal to <br /> an already beleaguered corporation. They also appear to have <br /> continuing problems with the Mine Safety and Health Administration <br /> (MSHA) -- the Governor intervened in 1987 . <br /> This situation confirms other recent reports and complaints <br /> from southwestern Colorado mining operations, such as Sunnyside <br /> Gold, concerning compensation cost escalation which is resulting in <br /> layoffs. <br /> Mid-Continent Resources ' Dutch Creek mine is located just <br /> west of the town of Redstone in Pitkin County. The mine employs <br /> approximately 400 workers, and has produced approximately 490, 000 <br /> tons of coal in 1990, valued above $9, 800, 000. This figure is <br /> about one-half the 1989 production level. They produce <br /> metallurgical coal which is shipped to Utah and Korea. A <br /> significant fire incident in August-September further reduced 1990 <br /> output, and weakened an already tenuous financial condition. <br /> We will keep you posted as events unfold. The State Workers ' <br /> Compensation folks may want to look into this issue. <br /> /dat:midcon <br />