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FROM NATURAL. RESOURCES SEC. 303 866 35SS 1555.1E-11 11:0t #667 P.12/13 <br /> cases which hold that a potential benefit to the estate is insufficient to support an administrative <br /> expense. First; ii is undisputed that the equipment,was actually used for the Debtor's benefit. <br /> Second, the superficial analysis by DMG, of course, ignores the actual rental rate of the <br /> equipment compared to the market rate which was substanually higher. Further, as will be <br /> shown by expert witness testimony at the hearing, because of the remote location of the mine <br /> where the equipment was located, it was far cheaper to continuously rent equipment on a standby <br /> basis, rather than haul it hundreds of miles to and from vendors whenever it was needed (if it <br /> could be obtained at all). The commercial realities were that the Will of renting this particular <br /> equipment were most beneficial to the Debtor and were superior to any other possible <br /> arrangements. <br /> DMG next takes issue with the payment of over$21,000 to cover payroll and insurance S� <br /> costs. This is not a charge for accountants, but rather for clerical work in the nature of � h, <br /> bookkeeping and office expenses such as copying, long distance telephone calls, filing, rent, . + <br /> computer usage and increased unemployment insurance. costs. These charges were necessary Vill r <br /> to cover Pitkin Iron's costs of providing payroll services for the individuals performing the <br /> cleanup, reclamation and remediation The fifteen percent (15%) was an estimate of the costs <br /> Pitkin Iron would incur in providing such services. Ile fifteen percent(15%) ci9wi cprrelates <br /> with Pitkin Iron's actual costs. In 1993, Debtor was experiencing a cashfiow shortage and only p,kk <br /> Firkin Iron agreed to perform the services and waitio receive compensation at a later date. No L z' <br /> other contractor could have been obtained to perform the work done by Piddn Iron on such <br /> terms. It is important to note that the administrative expenses submitted by Piddn Iron contain 1 <br /> no "profit" for Pitkin Iron, but rather are all pass-through charges. In contrast, DMG's bond =- <br /> calculations reflect a ten percent (10%) profit over and above direct costs. S 3 p <br /> DMG's final paint is an objection to payment of vacatiOn time to Pitkin Iron's employees. .� <br /> The law is well settled that vacation pay ate$ post-petition can be treated as an <br /> administrative expense just as wages are. rn the M&tt of&hatZ Federal Bearings Co. 5 B.R. <br /> 549,553 (Banla. 5.D.N.Y. 1980). The same holds true for Payment of training courses, health <br /> insurance, dental insurance and training charges. The training was required by the Mine Safety <br /> and Health Administration which had the power to suspend all activities at the mine if the <br /> individuals performing the work had not completed the training. <br /> 11 <br />