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Cheryl A. Linden <br /> April 6, 1994 <br /> Page 3 <br /> inspected and approved any reclamation work accomplished. This <br /> mechanism must still be refined. " <br /> From our side, I make the following observations. <br /> Resources wants to undertake reclamation this season, and believes <br /> that it can stretch the available funds by avoiding State <br /> contracting requirements and by maximizing use of the reclamation <br /> equipment which is being retained under the Plan. Resources does <br /> not have workers' compensation insurance and therefore will need to <br /> proceed through subcontractors who do have such insurance. For <br /> example, the contract for sealing portals is with R&G Excavating, <br /> an unrelated firm, although the reclamation equipment is being used <br /> by R&G on the project. We believe it would be very cost effective <br /> to employ two people to use and maintain the reclamation equipment. <br /> Greg Lewicki has estimated extensive savings relative to the costs <br /> estimated in the bond, as a result of using Resources' reclamation <br /> equipment. <br /> While Resources understands that the Division wants to <br /> insure that payment is made for work which has been completed <br /> satisfactorily, it may be necessary for some step payments to be <br /> made. It also is important to work out a funding mechanism which <br /> insures that contractors will receive payment promptly upon <br /> completion. Frankly, many contractors complain about waiting <br /> months for payment under State contracts, and this eliminates many <br /> contractors and drives up the cost. <br /> Finally, in response to your queries about appraisals of <br /> the Rockdust Plant, I am enclosing a copy of the June 15, 1993 <br /> appraisal by Van Court and Company of several parcels in Garfield <br /> County. While this report does not address the Rockdust Plant, it <br /> does address the adjacent "Unit Train Loadout Tract" beginning on <br /> page 16. The report finds a value of $10,000 per acre "for the 50 <br /> acres of usable industrial/commercial land. " Extrapolating this <br /> value to the 17.6 acres of the Rockdust Plant, the indicated value <br /> would be $176,000. The existing $147,600 offer from Dale Eubank is <br /> a little below this indicated value, but he is delaying taking <br /> possession for six months to one year, while the equipment and <br /> structures are being removed from the parcel. <br /> I am hopeful that with the competition between Eubank and <br /> Mid-Valley Design to purchase the parcel, we may see some <br /> improvement in the offers. However, the Van Court appraisal of the <br /> Train Loadout Tract indicates we are already close to value, and we <br /> should try not to squeeze the deal so hard that we lose both <br /> purchasers. So far, Eubank is the only of the two potential <br />