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r <br /> 1 <br /> James B. Holden <br /> Page 3 <br /> RECLAMATION <br /> As for reclamation, it is the Division's position that reclama- <br /> tion will proceed this year. Steve Renner is finalizing an <br /> invitation to bid. This invitation describes the anticipated <br /> reclamation to be performed this year. Steve expects work to be- <br /> gin some time in October. The Division is, and always has been, <br /> dedicated to reclaiming this site to all applicable standards. <br /> Mid-Continent mined this site for a number of years, then chose <br /> to petition in bankruptcy. It is now time for the Division to <br /> ensure that reclamation is completed. <br /> SITE MAINTENANCE <br /> The May 1991 order of the Mined Land Reclamation Board requires <br /> Mid-Continent to maintain the site to all applicable standards. <br /> Accordingly, Mid-Continent continues to be legally obligated to <br /> maintain the site. However, the invitation to bid written by <br /> Steve Renner includes maintenance requirements on an "as needed" <br /> basis. <br /> M&E CONTRACT <br /> As your letter indicates, M&E is to demolish structures and re- <br /> move scrap at the site at its own expense. Since the Division <br /> does not need to expend funds for this work, the Division is in <br /> favor of getting the benefit of M&E's performance. However, <br /> there has been some frustration with the progress of the M&E <br /> work. You have also acknowledged such a frustration. If this <br /> work is not completed by M&E, then the Division will have to <br /> undertake these tasks. <br /> As for use of the reclamation equipment, the Division is in the <br /> process of determining whether it is cost effective to use this <br /> equipment, or whether it would be more cost effective for the <br /> contractor who ultimately gets the job to use his own equipment. <br /> Diane Delaney has stated that some of the equipment is in need of <br /> repair. The Division requests Mid-Continent to submit an ac- <br /> counting of the condition of each piece of equipment with a list <br /> of repairs needed, if any. <br /> Also, as you acknowledged in your letter, there is a conflict be- <br /> tween the M&E contract and the liquidation plan. The contract <br /> provides that M&E is entitled to use the reclamation equipment <br /> and that M&E will be reimbursed for maintenance expenses from <br />