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FROM :NRTURPL RESOURCES SEC. 303 866 3SSS 1996,12-11 10:57 #667 P.03/13 <br /> which initially contemplated reorganization and sale of the mine, began to focus instead on <br /> liquidation. (See Debtor's Disclosure Statement for Second Amended Plan of Liquidation <br /> ("Disclosure Statement") pages 1-2 and 6-10.) <br /> When the mine ceased operation and entered the reclamation phase, the Department of <br /> Minerals and Geology ("DMG") wanted to ensure that reclamation activities were conducted in <br /> a timely and proper manner. At the same time, the Chapter 11 liquidation plan, which was <br /> being formulated and was later approved by this Court, called for the sale of real property <br /> owned by Debtor, some of which was actually at the mine site and some of which was at other <br /> nearby locations such as in or around Carbondale. However, because these properties had been <br /> used by Debtor for mining or mining-support activities for decades, substantial cleanup was <br /> required. No buyers desired to purchase these properties without such cleanup. See Disclosure <br /> Statement, p. 16. <br /> As the liquidation of the properties has occurred over the last several years, it has <br /> become apparent that many of the properties owned by Debtor, once cleaned, are actually quite <br /> valuable and have, in fact, produced substantial proceeds for the estate. Unfortunately, MCR <br /> was in somewhat of a "catch-22" situation because for the properties to have value on the <br /> market, they must be clean, but the cleaning, remediation and reclamation itself was expensive. <br /> An agreement was reached between MCR and Pitlan Iron for Pitkin Iron to clean up many of <br /> these properties to facilitate sale. A list of properties cleaned, reclaimed and/or remediated by <br /> Pitidn Iron, which work (except for the Limestone Plant Site) is included in the instant <br /> administrative claim, is set forth below: <br /> Sales Transactions <br /> Date Purchaser Property M Sale Price <br /> Carbondale Earth Investments, Fab. shop tract-in <br /> 12/31/93 LLC Carbondale $410,021.60 <br /> Limestone Plant <br /> 8/24/94 Date Eubank, LLC Site" $147;685.31 <br /> Industrial Park in <br /> 2/3195 C'dale LLC Carbondale, $1,280,000.00 <br /> 2 <br />