1994-07-18_GENERAL DOCUMENTS - C1981017

• Permit No: C1981017
• IBM Index Class Name: GENERAL DOCUMENTS
• Doc Date: 7/18/1994
• Doc Name: Distrubution of Liquidation Funds in Mid-Continent Resources, Inc
• Permit Index Doc Type: General Correspondence
• Media Type: D
• Archive: No

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GALE A. NORTON STATE OF COLORADO STATE SERVICES BUILDING
Attorney General 1525 Sherman Street- 5th Floor
DEPARTMENT OF LAW Denver, Colorado 80203
STEPHEN K. ERKENBRACK Phone [phone]
Chief Deputy Attorney General OFFICE OF THE ATTORNEY GENERAL FAX [phone]
TIMOTHY M. TYMKOVICH
Solicitor General July 18, 1994
Jim Holden
303 East 17th Avenue
Suite 930
Denver, CO 80203
RE: Distribution of liquidation funds in Mid-Continent Resour-
ces, Inc.
Dear Jim:
As you are well aware, funds for reclamation are now available
through the sale of the rockdust plant. The issue of how the
funds will be distributed to accomplish reclamation of the site
is now at hand. State law indicates that the funds from the
liquidation plan to perform reclamation are public funds and that
therefore state procurement and expenditure laws apply.
The Procurement Code is applicable to "publicly funded" contracts
entered into by all governmental bodies of the executive branch
of this state. § 24-101-105, C.R. S. (1988) . The Division of
Minerals and Geology is included in the definition of
"governmental body. " § 24-101-301 (10) , C.R. S. (1988) . The
term "contract" is defined as any type of state agreement, re-
gardless of what it is called, for the procurement or disposal of
supplies, services, or construction. § 24-101-103 (4) , C.R. S.
(1988) . "Procurement" is broadly defined as buying, purchasing,
renting, leasing, or otherwise acquiring supplies, services, or
construction. § 24-101-103 (14) , C.R. S. (1988) .
The facts of the Mid-Continent case fall within these applicable
definitions contained in the code. The only possible issue is
whether these are public funds. The code does not define the
term "publicly funded. " However, the applicable facts establish
that the funds from the liquidation plan are public funds.
The reclamation of a mine site is done for the health and safety
of the public. The Colorado Surface Coal Mining Reclamation Act
provides that the purpose of the act, among other things, is to