1994-08-25_GENERAL DOCUMENTS - C1981017 (2)

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t C d2 � O 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 (303) 866.4500 Chief Deputy Attorney General OFFICE OF THE ATTORNEY GENERAL FAX (303) 866-5691 TIMOTHY M. TYMKOVICH Solicitor General August 25, 1994 James B. Holden Holden & Jessop, P.C. 303 East 17th Avenue Suite 930 Denver, Colorado 80203-1264 - RE: Mid-Continent Resources, Inc. Dear Jim: I have received your letter of July 28, 1994, in which you raise concerns about the Division of Minerals and Geology's "gratuitous" application of the Procurement Code and the ramifi- cations thereof. In prior meetings in which the distribution of reclamation funds was raised, issues pertaining to the Procurement Code were always left open pending research into the matter. Indeed, the liquida- tion plan was not confirmed until April 11, 1994, and funds from the plan were not available until mid-July, 1994 . In any event, as explained in my July 18, 1994 , letter, the funds from the liquidation plan are required to be used by the Division for reclamation. These funds come to the Division only because the Division is the public agency responsible for enforcing rec- lamation standards. As such, these funds are public funds and my client is obligated to follow the requirements of the Procurement Code. In a non-bankruptcy situation, the Division revokes an operator's permit and forfeits the bond. The Division is required to place funds from the bond in a reclamation account. The Division then contracts for the acquisition of reclamation work pursuant to the Procurement Code. These funds are not from taxes or fees, yet they constitute public funds. Thus, contrary to your letter, the fact that the reclamation funds are from a liquidation plan ra- ther than taxes or fees does not mean that the funds are not pub- lic funds.