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Stephen W. Seifert <br /> January 13, 1993 <br /> Page 2 <br /> considerably less than the amount stated in my letter of July 28, <br /> 1992 , to Steve Seifert and Neal Wolf. That letter estimated the <br /> net from equipment sales, after costs of sale and reimbursement <br /> of M&E 's mothball advances, at around $3 to 3 .5 million. <br /> The amount of equipment recovered from underground was <br /> less than originally anticipated. Much equipment was abandoned <br /> underground, as a result of poor condition and the difficulty in <br /> removing some equipment at an economic cost. For example, about <br /> half of the underground conveyor was abandoned. I do not yet <br /> have a reliable estimate of what we can expect from equipment <br /> sales, but I am assuming for now that the net may be more in the <br /> range of $2 million. <br /> Liquidation of Real Property <br /> On the other hand, there are some encouraging <br /> developments with respect to the liquidation of Resources ' real <br /> property. Since our November 5 meeting, Resources has closed the <br /> sale of the 160 pasture tract, realizing net sales proceeds of <br /> $159,500. My July 28 letter estimated the net from this parcel <br /> in the range of $100,000 to 160, 000. <br /> With respect to the mine site, Resources has received a <br /> proposal from two brokers, including Don Sillivan, who brokered <br /> the sale of the 160 acre parcel. They request a six month <br /> exclusive listing covering approximately 6, 000 acres, including <br /> the 455 acres in the coal preparation plant area. They believe <br /> the property is best marketed as a whole rather than marketed as <br /> separate parcels. Their recommended asking price would be <br /> $2,495 , 000, or a little over $400 per acre; the terms of sale <br /> would be 30% down, with the balance carried by the seller and <br /> amortized over 4 years. They propose to advertise extensively <br /> through publication and direct mail. The terms of their <br /> compensation would be a 7% commission. <br /> Bob Delaney believes that Sillivan has a good track <br /> record in selling mountain property, and the results on the 160 <br /> acre parcel provide some evidence of this. The asking price, if <br /> realized, would exceed the value of the property as estimated in <br /> my July 28 letter, which was $1 to 1 .8 million. <br /> Another broker, Mason & Morse, recently expressed an <br /> "opinion of value" for the Carbondale Industrial Park and the <br /> Fabrication Shop parcels. The value expressed for the industrial <br /> park was $1 , 120, 000 and for the fabrication shop was $330, 000 to <br />