Laserfiche WebLink
Cheryl A. Linden <br /> July 28 , 1994 <br /> Page 4 <br /> apply. Reclamation of the mine is publicly administered, but <br /> privately funded. <br /> Confirming this point, earlier in the year Mike Long <br /> advised Resources that the Division previously permitted a mine <br /> operator to reclaim its mine using funds provided by the <br /> reclamation bond which was held by the Division. The mine was the <br /> Grassy Gap coal mine . The operator of that mine contracted for <br /> reclamation services . As work was completed, the Division released <br /> funds to the operator to finance the contracts . Although the <br /> contracts were financed with the funds held by the Division, the <br /> contracts did not go through the Procurement Code . <br /> I want to make clear that Resources does not contest the <br /> MLRB' s right to hold the reclamation funds and make decisions <br /> concerning the expenditure of those funds . Section 4 . 3 . 4 of the <br /> Plan provides that "funds received by the MLRB pursuant to Sections <br /> 4 . 3 . 1 and 4 . 3 . 2 of the Plan shall be expended by the MLRB pursuant <br /> to the Reclamation Plan and [any reclamation schedule negotiated <br /> prospectively among the Debtor, the DMG, and the MLRB] . " As noted <br /> above, the procedures proposed by Resources would have given the <br /> Division prior approval over all work to be contracted, and would <br /> have permitted the Division to inspect all work performed before <br /> disbursing funds held by the Division. <br /> Resources' concern is that the Division' s gratuitous <br /> application of the Procurement Code will delay implementation of <br /> the reclamation plan and cause the cost of reclamation services to <br /> rise needlessly. If money is wasted by the Division, the <br /> implementation of the reclamation plan will be jeopardized. This <br /> leads me to my second preliminary comment . <br /> Liability for a Reclamation "Deficiency" <br /> Your July 18 letter states that "Resources is still <br /> legally liable for any deficiency in the bond proceeds to cover <br /> full reclamation. " I generally agree with this statement . As a <br /> corporation liquidating in bankruptcy, Resources cannot and has not <br /> discharged any liabilities in its bankruptcy case, including any <br /> reclamation liabilities . The extent of Resources' reclamation <br /> obligation is defined by applicable reclamation law, including the <br /> reclamation plan approved by state and federal agencies . <br /> Nonetheless, your statement is somewhat meaningless <br /> because the confirmed Chapter 11 Plan will leave Resources without <br /> any assets . As noted above, Resources' assets are under the <br /> control of a Creditors' Trust . The assets will be sold by the <br /> Trust, and 69% of the net proceeds will be distributed to the MLRB . <br /> Section 4 . 3 . 3 of the Plan provides that the reclamation agencies, <br />