1994-07-18_GENERAL DOCUMENTS - C1981017

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Jim Holden Page 2 protect the public from the adverse effects of mining and to as- sure procedures to allow for public participation in the develop- ment and enforcement of standards which apply to mine sites. §§ 34-33-102, C.R. S. (1988) . There is no question that the reclamation of the Mid-Continent site is for the benefit of the public. The funds from the liquidation plan are earmarked for reclama- tion. These funds are therefore to be used for the public's ben- efit. They come to the Division because of the Division's statu- tory role regarding reclamation of mine sites. Accordingly, these funds are public funds. See also § 24-101-102 (1) , C.R. S. (1988) . Consequently, the Procurement Code's require- ments, including bidding requirements, see § 24-103-201, C.R. S. , must be satisfied when the liquidation funds are dis- bursed to pay for reclamation work. In addition to the Procurement Code provisions, the General As- sembly contemplated in the Colorado Surface Coal Mining Reclama- tion Act that, at this stage of the matter, the Division have control of the funds and of the reclamation of the site, includ- ing being the procuring party to reclamation contracts. The Gen- eral Assembly has given the Mined Land Reclamation Board and the Division full power and authority to enforce the coal act. See §§ 34-33-104 and 105, C.R.S. (1988) . The act is to en- sure that reclamation of mine sites is accomplished. Once a per- mit is revoked and the performance bond is forfeited, the act gives custody of reclamation funds to the Division. § 34-33-124 (4) , C.R. S. (1988) . The coal rules require that the Division deposit bond money into a separate reclamation ac- count and that the Division use these funds for reclamation. See 2 CCR 407-2 , Rule 3 . 04 . 2 (4) ; see also Colo. Const. Art. V, § 33 ; § 24-36-103 (1) , C.R. S. (1988) . Thus, despite the fact that Mid-Continent Resources is still legally liable for any deficiency in the bond proceeds to cover full reclamation, see e.g. , 2 CCR 407-2 , Rules 3 . 02 . 1 (4) , 3 . 02 .2 (5) , 302 . 3 , and 3 . 04 .2 (4) , state law establishes the neces- sity for the Division itself to enter contracts to obtain recla- mation services and to meet state procurement and expenditure laws. Therefore, the Division is in the process of preparing in- vitations to bid and will enter contracts in accordance with pro- curement laws.