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FROM:natural TO:DMG OCT 15, 1993 8:22AM #085 P.10 <br /> Summary of cash collateral request <br /> 44. The total cash collateral authorization sought by <br /> Resources in this Third Motion is as follows: <br /> General and administrative, <br /> June through December 1993: $ 52,500.00 <br /> Other operating expenses, <br /> June through December 1993: 245,000.00 <br /> Portal sealing: 51,500.00 <br /> Pond cleaning: 16,800.00 <br /> Flume repair: 27,000.00 <br /> PCB removal: 50,000.00 <br /> Real estate taxes: 120,000.00 <br /> Legal fees and expenses: <br /> Sherman & Howard: 47,642.05 <br /> Holden & Jessop, P.C. : 43, 142 . 19 <br /> Delaney and Balcomb, P.C. 2,697 .00 <br /> Fairfield and Woods, P.C. : 26,250.00 <br /> TOTAL: $682,531.24 <br /> GROUNDS FOR USE OF CASH COLLATERAL <br /> 45. Pursuant to Section 363(c) (2) of the Bankruptcy <br /> Code, a debtor may not use cash collateral without either (i) <br /> consent of the entities having an interest in the cash <br /> collateral, or (ii) Court authorization, which is premised on the <br /> adequate protection of any non-consenting entities having an <br /> interest in cash collateral. <br /> 46. In considering whether creditors are adequately <br /> protected notwithstanding these proposed expenditures, Resources <br /> notes that the $120,000 of taxes which are to be paid constitute <br /> a senior statutory lien against the Debtor's property. Since the <br /> payment of taxes will reduce the senior lien, junior lien <br /> creditors will be adequately protected. <br /> 47. Creditors are adequately protected notwithstanding <br /> the approximate $95,000 to be spent on reclamation of the mine <br /> site, because such expenditures are to be charged against the <br /> Rockdust Plant which is pledged to secure mine reclamation. <br /> 7 <br />