1994-02-06_GENERAL DOCUMENTS - C1981017

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The Plan augments the amounts to be received by the MLRB with distributions from the Creditors' Trust to the MLRB, in the amount of $3,000,000, less: (i) the net proceeds from the Rockdust Plant or, in the alternative, the proceeds realized by the MLRB and the OSM from foreclosure on the Rockdust Plant; (ii) $500,000, representing the estimated cost of work which is to be performed by M&E pursuant to the M&E Contract, at no cost to the Debtor; and (iii) the cost of reclamation work performed prior to the Plan confirmation pursuant to cash collateral orders entered by the Court, the cost of which shall be determined according to the costs for such work set forth in the approved reclamation bond. Through December 31, 1993, the Debtor has expended approximately $258,960 on reclamation work. The cost of work performed to date, as estimated in the reclamation bond, may be less, due to the fact that some work was performed to abate violations related to interim maintenance rather than final reclamation; on a preliminary basis, the credit for work performed appears to be approximately $200,000. Based on the assumption that the Rockdust Plant nets approximately $400,000 for reclamation, the total distributions to the MLRB from the Creditors' Trust would be approximately $1,900,000. The foregoing distributions shall constitute forfeited bonds within the meaning of C.R.S. S 34-33-124 (4 ) , to be held by the MLRB and expended pursuant to the Debtor's approved Reclamation Plan. The Plan also provides for the lease of certain equipment, referred to as the "Reclamation Equipment, " to the MLRB for one dollar. The Reclamation Equipment includes a four-wheel drive pickup truck, a CAT D8N crawler tractor, a 930 CAT loader, a 980 CAT loader, a 945 Fiat Allis loader, a John Deere 310A backhoe loader, a CAT backhoe, a CAT 16 G motor grader, a Renworth dump truck, and a 915 EIMCO loader with bucket. The Reclamation Equipment may be retained by the MLRB until September 1, 1995, at which point it must be delivered to the Creditors' Trustee for sale under the Plan, or earlier, if the MLRB determines that the equipment is no longer needed for reclamation of the Mine Site. The equipment may be used for reclamation work on the Mine Site, permitting the MLRB to avoid the substantial cost of renting similar equipment from independent lessors. The equipment shall be returned in as good a condition as that in which the equipment was provided to the MLRB, normal wear and tear excepted. All maintenance expenses associated with the equipment shall be paid from the funds distributed to the MLRB under the Plan. The Plan contemplates that the Debtor, the DMG, and the MLRB shall negotiate a schedule for completing reclamation of the Mine Site. It is anticipated that that reclamation schedule generally would provide for the completion of principal reclamation activity at the Mine Site prior to December 1, 1996. 21