1994-02-06_GENERAL DOCUMENTS - C1981017

• Permit No: C1981017
• IBM Index Class Name: GENERAL DOCUMENTS
• Doc Date: 2/6/1994
• Doc Name: Case No. 9211658 Debtors Disclosure Statement for Second Amendment Plan of Liquidation
• Permit Index Doc Type: General Correspondence
• Media Type: D
• Archive: No

In January 1992, with negotiations to sell the Mine to
Geneva pending, the Board extended the January 23, 1992 deadline
set forth in the consent order. The Board continued to extend the
deadline from time to time. In September 1992, following
termination of the Geneva negotiations, the Board revoked the
Debtor's mining permit without objection by the Debtor. Revocation
of the permit triggers the requirement to reclaim the Mine site.
Current reclamation activities. Because of the altitude
of the Mine, most reclamation work must be performed during the
Summer months. In June 1993, the Debtor obtained authorization to
spend $300,000 of cash collateral on reclamation of the Mine site,
with expenditures to be charged against the Rockdust Plant upon
sale of that facility. During the Summer of 1993, the Debtor
employed a seven person crew to perform reclamation work, in
addition to some outside contractors whose services were required
for particular activities.
At the present time, the #5 mine portal is largely
reclaimed, except for ongoing revegetation efforts and monitoring
of ponds. The structures at the #3 mine portal have been cut up
into scrap and removed from the site. Final grading on the main
refuse pile is finished and the pile has been partly top-soiled.
In the Summer of 1993, the Debtor obtained approval by
the Mine Safety and Health Administration of a Mine portal sealing
plan. An outside contractor was engaged to seal portals, and
approximately 60% of all Mine portals have been sealed at this
time.
In June 1993, the Debtor received a number of citations
from the Division, pertaining to such matters as the maintenance of
water flumes and ditches, maintenance of perimeter markers, erosion
control, maintenance of sediment ponds, and topsoil distribution on
a coal mine waste bank. The Debtor has substantially completed the
work required to abate these violations.
With respect to other environmental remediation, the
Debtor has removed PCB-contaminated transformers, which are to be
temporarily stored at the preparation plant area at the Mine. The
Debtor is soliciting bids for disposal of the transformers and
intends to dispose them later this year. Based on the bids
received, the cost of removing PCB-contaminated transformers is
estimated at $50,000.
The Debtor has engaged Greg Lewicki, P.E. to advise the
company regarding the planning, design, and implementation of
reclamation activities. Lewicki was recommended by the Division.
Adequacy of the reclamation bond. As noted above, in
setting the amount of the reclamation bond, the Division estimated
the cost of reclaiming the Mine site at $3,000,000. This is
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