1995-08-28_GENERAL DOCUMENTS - C1981017

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BURNS, FIGA & WILL, P.C. J. KEMPER WILL ATTORNEYS AT LAW OF COUNSEL PHILLIP S. FIGA ONE OTC, PENTHOUSE THREE HUGH A. BURNS CANDACE COLE FIGA GEOFFREY P. ANDERSON 5251 OTC PARKWAY DANA L.EISMEIER ENGLEWOOD, COLORADO 80111 NORMAN W. HIGLEY August 2S 1995 ALEXANDER R. ROTHROCK TELEPHONE (303) 796-2626 C. M. TOKE VANDERVOORT FACSIMILE (303) 796-2777 VIA FACSEMnE AND FIRST-CLASS MAIL. Cheryl Linden L-U 211 Assistant Attorney General Natural Resources Unit 1525 Sherman Street, 5th Floor 7. Denver, Colorado 80203 ^ Re: Administrative Claim of Pitkin Iron Corporation In Re: Bankruptcy No. 92 11658 PAC, United States District Court and Bankruptcy for the District of Colorado AG No. NR CL ICABY, AG File No: EWA 94 00246 Dear Ms. Linden: This letter is in response to your letter of June 23, 1995, regarding the Application for Allowance of Administrative Claim filed by Pitkin Iron Corporation ("Pitkin Iron"). The first issue raised in your letter is in regard to the difference in the time periods between the Application and the information subsequently provided to you. The Application requested reimbursement for expenses for August 1992 through June 30, 1994. The materials provided to you showed work performed from September 1993 through July 1994. The differences in the dates is due to different accounting methods. You will notice that in the attachment to the Application, the running balance of payments from Mid-Continent Resources ("MCR") to Pitkin Iron reached zero in August 1992, and as of June 30, 1994, was $203,096.21. As of September 1, 1993, the balance owed Pitkin Iron was $72,677.16. Additional costs incurred by MCR during September 1993 brought the balance owed to $109,088.82. The accounting assumption, under the materials previously provided to you, is that the subsequent payments made by MCR to Pitkin Iron were applied against the debt through September 1. These payments, which were made from November 1993 to February 1994, totalled$85,842.32. The additional charges for July 1994 totalled$16,797.53, bringing the total owed Pitkin Iron through July 1, 1994, to $220,137.73. No additional charges were incurred by Pitkin Iron after July 31, 1994, which will require an application for administrative claim. In order to resolve this matter with the State, Pitkin Iron is willing to accept payment of the sum of $203,096.21 in full satisfaction of all of its claims against MCR for post-petition administrative claims. Alternatively, Pitkin Iron will file another Application for Allowance of an Administrative Claim for the $16,797.53 for July 1994, if Pitkin Iron and the State cannot come to an agreement on this issue.