1993-10-05_GENERAL DOCUMENTS - C1981017 (2)

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A e October 1, 1993 Page 2 funds to be used for other environmental remediation. This was not well thought out on my part. The only bonds which can be forfeited to the DMG and the OSM is the Rockdust Plant securing mine reclamation, a senior deed of trust on the Carbondale Industrial Park (limited in amount to $7,000) , securing reclamation of the Mid-Continent Quarry, and two certificates of deposit (totalling about $4 ,500) , securing reclamation of the Marblehead Quarry. As amended, this property goes directly to the DMG and the OSM, unless the agencies wish us to sell the property for their benefit rather than go through foreclosure. In the case of the deed of trust on the Industrial Park, the Plan cashes out the deed of trust with a $7, 000 cash payment. Under the amended Plan, the funds which augment the existing reclamation bond are to be administered through the Environmental Trust. Section 6. 3.3 provides that the Environmental Trustee shall be a person who is unaffiliated with the Debtor, and who is well qualified to supervise the environmental activities contemplated under the Plan. I anticipate that, after discussion with you, we will select a trustee and disclose this as part of Plan confirmation proceedings. This is intended to respond to the State's request that Resources not control the funds. Under the amended Plan, the only funds that will be controlled by Resources are the funds which are to be distributed on the Effective Date (summarized in Section 6. 1) . The Plan now expressly recognizes two objectives of reclamation. Section 6.3. 1 provides that "To the extent consistent with the Reclamation Plan, the activities of the Environmental Trust shall also be designed to enhance the value and marketability of the Mine Site. " The Plan now credits cash collateral previously expended on reclamation against the $1.5 million allocated under the Plan. We have not otherwise responded to requests from some of you to recognize other credits or adjustments. Resources believes that $1.5 million will be needed to complete the reclamation plan which previously has been approved by the DMG and the OSM. Performing this work is essential to marketing the property for post-mining uses. Another mechanical change concerns title to property pending sale. The earlier plan provided for the passage of title into the Creditors' Trust or, in a few instances, into the Reclamation Account. Questions were raised about some tax implications to the Creditors' Trust. In addition, Resources