1994-01-31_GENERAL DOCUMENTS - C1981017 (3)

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FEB 1 HOLDEN & JESSOP, P.C. ATTORNEYS AT LAW 303 EAST 17y-AVENUE, SUITE 930 DENVER, COLORADO 8 0 2 0 3-12 64 (303) 860-7700 FACSIMILE (303) 860-7233 January 31, 1994 VIA HAND DELIVERY Cheryl A. Linden Assistant Attorney General 1525 Sherman Street, 5th Floor Denver, Colorado 80203 Re: Mid-Continent Resources, Inc. ( "Resources" ) Dear Cheryl: I am writing to follow up on the meeting between Resources' legal counsel and the MLRB on January 26. Interim Site Maintenance At the meeting, the Board asked whether Resources is "threatening" to abandon maintenance of the mine site unless the Board accepts Resources' pending Chapter 11 plan. Resources' answer was no, and remains no -- there is no letter, memo, document, or statement from Resources to the Board or Division that could be reasonably construed as such a threat. To date, Resources has performed all interim site maintenance required by the Division. When notices of violation have been issued pertaining to interim maintenance, they have been abated. While Resources remains in control of the site, it intends to maintain the site. There are funds in the bankruptcy estate which Resources is authorized to spend for this purpose. However, more needs to be said on this subject, because it appears that Resources will not be in control of the site for much longer. As you know, Resources originally intended to perform the reclamation of its mine using its earth-moving equipment and funds from its bankruptcy estate. During the Summer of 1993, Resources spent several hundred thousand dollars in furtherance of reclamation. However, during the Fall of 1993 it became clear that the Division was opposed to Resources carrying out the project itself. Thus, in October 1993 Resources filed a First Amended Plan of Liquidation which called for reclamation to be performed by an "environmental trustee" appointed under the Plan, who would be a person not affiliated with Resources, and who would supervise the