1994-02-02_GENERAL DOCUMENTS - C1981017

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OF CO 1876 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) 8664500 Chief Deputy Attorney General OFFICE OF THE ATTORNEY GENERAL FAX (303) 866-5691 TIMOTHY M. TYMKOVICH Solicitor General February 2, 1994 Mined Land Reclamation Board RE: Mid-Continent Resources response to Board meeting Dear Board Member: Please find enclosed a letter from Jim Holden, the attorney for Mid-Continent Resources, which responds to the Board's comments during its January 26, 1994, meeting. The highlights of the letter are as follows: 1. MCR will continue to perform site maintenance as long as it is in control of the funds; without funds, MCR cannot perform any necessary maintenance of the site. 2. MCR has no money to give to the Board for reclamation, and the agents named in the personal liability suit have no such money to give to the Board up front. 3 . The parties named in the personal liability suit will not guarantee payment of funds required under the liquida- tion plan. 4 . MCR is willing to try to get Sanwa to drop its demand to defer the personal liability suit in exchange for sub- ordination of its claims. That is, MCR will attempt to get Sanwa to agree that a stay of the personal liability suit will not be required as part of the liquidation plan. Jim Holden would like to know whether the Board and the Divi- sion would support the plan if distribution was not condi- tioned on a deferral of the litigation. 5. MCR is not willing to hand over the deed to the rockdust plant. MCR feels that because there are numerous junior liens against this property, a foreclosure action to determine or extinguish such liens is necessary to make the