1995-11-06_GENERAL DOCUMENTS - C1981017

• Permit No: C1981017
• IBM Index Class Name: GENERAL DOCUMENTS
• Doc Date: 11/6/1995
• Doc Name: Funding of Liquidation Plan
• From: Attorney Generals Office
• To: Holden & Jessop
• Permit Index Doc Type: General Correspondence
• Media Type: D
• Archive: No

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TAXED CONFIRMATION COPY ONLY
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GALE A. NOR STATE OF COLORADO STATE SERVICES BUILDING
Attorney Generalral 1525 Sherman Street-5th Floor
STEPHEN K. ERKENBRACK DEPARTMENT OF LAW Denver, Colorado 80203
Chief Deputy Attorney General OFFICE OF THE ATTORNEY GENERAL Phone (303)) 866 4500
FAX [phone]
TIMOTHY M. TYMKOVICH
Solicitor General
November 6, 1995
James B . Holden
Holden & Jessop, P. C.
303 East 17th Avenue
Suite 930
Denver, CO 80203-1264
RE: Mid-Continent Resources, Inc . /Funding of Liquidation Plan
Dear Jim:
I have received your letter of October 30, 1995, with the
attached commitment letter from Sanwa concerning the loan to Mid-
Continent Minerals Corporation. Your letter indicates that
Minerals and Sanwa want to close the $2, 000, 000 loan by December
15, 1995 .
According to Sanwa' s letter of commitment, which I received
on October 30, 1995, the Division of Minerals and Geology is to
receive from the loan proceeds "up to" $1, 286, 000 . This figure
is based on the Creditors' Trustee' s calculation of what is still
owed to the Division under the liquidation plan. Among the
conditions of the loan are that there be written evidence that
Minerals and the Division agree on the credit to be given for
prior reclamation work performed and agree on allocating a
certain amount of funds to the reclamation of the Preparation
Plant Tract with a timetable for completion.
This newest proposal to fund the liquidation plan is based
on a plan by Mid-Continent Resources' to develop the mine site
for residential and recreational use. In your October 3 , 1995,
letter, you indicate that for Sanwa to agree to the loan, it is
necessary to "harmonize" the approved reclamation plan with the
"likely" post-mining uses of the site, i .e. , the development of
the property. Pursuant to that statement, you enclosed a memo
from Diane Delaney outlining the amendments to the reclamation
plan which she thinks may be necessary to harmonize the
reclamation plan with the development plan. Many of these
amendments entail eliminating reclamation called for by the
current reclamation plan.