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F C �?�G <br /> it <br /> 18T8 <br /> GALE A. NORTON STATE OF COLORADO STATE SERVICES BUILDING <br /> Attorney General 1525 Sherman Street- 5th Floor <br /> DEPARTMENT OF LAW Denver, Colorado 80203 <br /> STEPHEN K. ERKENBRACK Phone (303) 866-4500 <br /> Chief Deputy Attorney General OFFICE OF THE ATTORNEY GENERAL FAX (303) 866-5691 <br /> TIMOTHY M. TYMKOVICH <br /> Solicitor General <br /> December 9, 1993 <br /> James B. Holden <br /> 303 East 17th Avenue, 1930 <br /> Denver, Colorado 80203 <br /> RE: Mid-Continent Resources, Inc. - DMG's concerns about the <br /> amended liquidation plan and other matters <br /> Dear Jim: <br /> I have reviewed the amended liquidation plan submitted by Mid- <br /> Continent Resources, Inc. The Division of Minerals and Geology <br /> has several concerns about the proposed plan. This letter is to <br /> provide with a list of those concerns. <br /> 1. It is my understanding that under the amended liquidation <br /> plan, the proceeds of the rockdust plant, along with $7, 000 in <br /> cash related to the Mid-Continent Quarry, and the proceeds from <br /> the certificates of deposit securing reclamation on the <br /> Marblehead Quarry, will be given to the DMG on the effective <br /> date. However, an environmental trust is to be created to hold <br /> funds to be used to perform reclamation according to the approved <br /> reclamation plan, and to the extent consistent with the recla- <br /> mation plan, to enhance the value and marketability of the mine <br /> site. It is clear that the plan requires that the funds in the <br /> trust be used first and foremost for reclamation of the site pur- <br /> suant to the reclamation plan. <br /> The plan provides that the trust is to be administered by a <br /> trustee unaffiliated with Mid-Continent Resources, Inc. It cre- <br /> ates a structure in which the trustee is required to make <br /> "reasonable efforts" to coordinate the activities of the trust <br /> with governmental entities having applicable regulatory responsi- <br /> bilities and to report to the Division regarding reclamation ac- <br /> tivities. This type of trust set-up is unacceptable to the Divi- <br /> sion for a number of reasons. <br /> Mid-Continent Resources agreed to perform a reclamation plan. <br /> Such plan was approved by the Mined Land Reclamation Board. Mid- <br />