1993-11-26_GENERAL DOCUMENTS - C1981017 (2)

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UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF COLORADO In re: ) MID - CONTINENT RESOURCES, INC. ) Case No. 92 11658 PAC T.I.N. 36- 1475193 ) Chapter 11, M.C. No. H &J -10 Debtor. ) DEBTOR'S APPLICATION TO EMPLOY SPECIAL COUNSEL (PARCEL MAURO HULTIN & SPAANSTRA, P.C.) Mid - Continent Resources, Inc., (the "Debtor "), through its attorneys, Holden & Jessop, P.C., hereby applies, pursuant to 11 U.S.C. §§ 327(e) and 1107, for an order authorizing it to employ special counsel, Parcel Mauro Hultin & Spaanstra, P.C. ( "Parcel Mauro "), in the above- captioned case and related proceedings. Additionally, pursuant to 11 U.S.C. § 363 the Debtor seeks authorization to use cash collateral to provide Parcel Mauro with a $20,000 retainer. The following is stated in support of this Application: 1. The Debtor filed a voluntary petition under Chapter 11 of the Bankruptcy Code on February 12, 1992. The Debtor currently is administering its bankruptcy estate as debtor -in- possession. 2. There are several matters involving reclamation of the Debtor's coal mine which require the advice of experienced counsel. These matters are described below. 3. Although the Debtor's bankruptcy counsel has gained a passing familiarity with reclamation matters during the course of this bankruptcy case, mine reclamation is a specialized area of law better handled by counsel with a natural resources background. Notices of Violation 4. The Division of Minerals and Geology of the Department of Natural Resources of the State of Colorado (the "DMG ") has issued several notices of violation pertaining to the Debtor's compliance with certain regulatory provisions. The notices are within the police powers exception to the automatic stay. Unless response is made, the notices could result in the imposition of monetary penalties and in the imposition of reclamation requirements which are inconsistent with the Debtor's approved reclamation plan.