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James B. Holden <br /> Page 2 <br /> proceeds for a survey. The contract provides in paragragh 6 <br /> that Resources will cause the corners and boundary lines of the <br /> property to be flagged by a surveyor so that the Purchaser can <br /> visually inspect and approve the property boundaries. Was the <br /> above-mentioned charge paid to cover the surveying requirements <br /> referred to in paragraph 6 of the contract? <br /> Also in our previous conversations, you had agreed to find <br /> out how R&G was paid for sealing of the portals, and to find out <br /> what reclamation equipment needed repair since Diane Delaney had <br /> previously mentioned to the Division that several pieces of <br /> equipment needed repair. <br /> Have there been any developments in the sale of the <br /> Carbondale Industrial Plant? The last information you gave me <br /> was that the bankruptcy court had approved of the sale but that <br /> Resources and the intended buyer were negotiating remediation <br /> issues. Has there been any progress made on this sale? <br /> The last issue on which I am requesting information concerns <br /> litigation continued by Resources and the Water Quality Control <br /> Division ("WQCD") . As you are aware, Robert Delaney's firm, <br /> Delaney and Balcomb, is representing Resources in an action that <br /> was recently decided by the Colorado Court of Appeals. The court <br /> held that the WQCD's issuance of a violation to Resources was <br /> valid. Accordingly, the court remanded the case to district <br /> court with directions to reinstitute the judgment. However, <br /> Resources has filed an objection to the reinstitution of the <br /> judgment in the district court. I have received a copy of WQCD's <br /> response to Resources' objection; WQCD contends that Resources' <br /> action at this stage is groundless and frivolous. <br /> Given these facts, my question is who has authorized Delaney <br /> and Balcomb to continue to litigate this matter, and how is <br /> Robert Delaney's law firm being paid. Is it being paid through <br /> liquidation funds? Has the bankruptcy court already authorized <br /> the payment to Delaney and Balcomb to continue litigating this <br /> case? If so, what amount of attorney's fees did the court <br /> authorize? <br /> I would appreciate hearing back from you on these matters as <br /> soon as possible. Thank you for your attention to this matter. <br />