1993-08-03_GENERAL DOCUMENTS - C1981017

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TELEPHONE AREA CODE 303 945-6546 SfeLr ,eP•°nt: D n 7 6 - Mr. Frank R. Johnson Assistant Attorney General 1525 Sherman Street, Fifth Floor Denver, CO 80203 Dear Frank: OFFICE OF GENERAL COUNSEL MID - CONTINENT RESOURCES, INC. P 0 DRAWER 790 818 COLORADO AVENUE GLENWOOD SPRINGS, COLORADO 81602 August 3, 1993 Re: Mid - Continent Resources, Inc. Reclamation AUG 0 9 RECD FAX AREA CODE 303 945 -2303 This letter is intended as a follow -up with some additional thoughts that I hope will be helpful to you in preparing a draft of agreement concerning reclamation of the Coal Basin mine site as discussed in the meeting on July 23, 1993. Mid - Continent Resources, Inc. (MCR) is proceeding with reclamation work on a limited basis under the funding authorized by the Order Authorizing Use of Cash Collateral entered in the Bankruptcy Court on June 9, 1993. From the meeting, it is clear that modification of the approach taken in a Plan and Disclosure Statement will be necessary with respect to custody and disbursement of monies paid into the Reclamation Account, and with respect to responsibility for performance and completion of the reclamation work. You mentioned that the State is taking a firm position that the reclamation fund money should be paid into the State Treasury and disbursed by the State. The MLRB Order revoking the Permit provided, inter alia: "6. The Board orders MCR to perform reclamation pursuant to the Final Reclamation Schedule specified in the Settlement Agreement incorporated into the May 1991 Order, as modified by the May 1992 Order." "7. The Board acknowledges that MCR, and its contractor, may conduct salvage operations at the site notwithstanding the revocation of the permit. Such salvage operations are a component of reclamation operations. Pursuant to Sec. 34 -33- 124(4), C.R.S. an operator may conduct such reclamation operations