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Cheryl Tome <br />Steven W. Seifert <br />Frank R. Tohnson <br />October 5, 1992 <br />Paget <br />penalties which probably would be given administrative priority <br />n the bankruptcy case. Resource's is meeting with MSRA on <br />Friday, October 9 to present a plan for sealing the portals. <br />Bert King, who has performed the underground salvage at <br />the mine, is willing to seal the portals using Resources' <br />equipment and his personnel. Sealing is done by filling the <br />portals with non - combustible material, such ea concrete block and <br />dirt. King would use heavy equipment to push loose concrete, of <br />which there is no shortage, into the portals. The sealing of <br />portals thus has the added benefit of contributing to the cleanup <br />of the mine site. The total oost of sealing the portals might be <br />in the range of $150,000. King is preparing a more detailed <br />estimates. The work would begin this fall, and be completed by <br />this time next year. <br />The issue is funding. Resources would like to commit <br />the first $150,000 of net equipment proceeds to the project. <br />King is willing to proceed on this basis. However, these <br />proceeds, when received, will be Sanwa's oaah collateral, go <br />Repouroee cannot unilaterally commit the funds to King. <br />while ideally we would wait for a sale of the rookdust <br />plant and use those proceeds for sealing the portals, it will <br />take some time to sell the rookdust plant and the sealing of the <br />portals cannot be delayed while the plant is marketed and sold. <br />While 1 hope that negotiations among the parties will result in <br />an overall agreement for the funding of a reasonable reclamation <br />program, T am requesting Sanwa and the Committee to consider this <br />particular funding request on an expedited basis. <br />Incidentally, ventilation and pumping systems at the <br />mine were turned off on October 4, following the removal of the <br />last pieces of equipment which King felt justified keeping the <br />mine open. There have about $35,000 of sales to date, all for <br />pricsp at or above the price list, More substantial sale <br />activity is now expected, as the focus shifts from salvaging <br />underground equipment to marketing the equipment which is now <br />located at the surface. Mike Ebert of Machinery and Equipment <br />Company reports that the sales brochure is now at the printers. <br />E 'd dOSS3f '8 N3Q10H WdES : 2T a6. GO 100 <br />