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Your settlement offer does not provide any assurance that there are sufficient <br /> assets from which the outstanding taxes will be paid. You have still not provided an <br /> appraisal of the preparation plant site, and there is no indication of value of any of the <br /> personal property or improvements that have been salvaged and are being stored in <br /> Garfield County. Your offer to provide a lien on the property stored in Garfield County <br /> does not give us anything new, since the County has always had a lien on that property. <br /> In addition, because there is no assurance that there will be sufficient funds <br /> available to pay all of the personal property taxes after the payments you propose in <br /> your letter, the County is unwilling to forego a court determination concerning the <br /> correct interpretation of the bankruptcy plan, with an accounting of the monies <br /> received from M &E to date. However,rather than go through that process, the County <br /> is willing to settle this matter on the following basis. <br /> First, with respect to the amounts currently held in escrow, Pitkin County <br /> believes it is entitled to receive all the proceeds,to be applied first to satisfy the personal <br /> property taxes, and the balance for a partial satisfaction of the taxes due under <br /> schedule 7863. Further, the County wants an acknowledgment that the balance due <br /> under schedule 7863 constitutes a lien on all remaining real property owned by Mid- <br /> Continent. With respect to your position that only the preparation plant tract is subject <br /> to the lien of schedule 7863, the County strongly disagrees. First of all, the legal <br /> description itself on schedule 7863 has always included "all producing and non- <br /> producing coal lands", such lands located in TlOR89W and T10 & 11S R88W of the <br /> 6th P.M. owned or held by Mid-Continent. This schedule does assess all lands within <br /> that legal description owned by Mid-Continent, even though all the surface was also <br /> separately assessed as agricultural. <br /> The majority of the tax certificates which have been issued in connection with <br /> sales of lands have been issued pursuant to a specific request from Stewart Title for a <br /> tax certificate pertaining to a particular schedule. It is unfortunate that the County did <br /> not have a cross reference system to pick up schedule 7863 on all the prior sales, but <br /> that mistake does not eliminate the Telluride sale property nor the remaining properties <br /> owned by Mid-Continent from the lien established for taxes due under schedule 7863. <br /> Thus,the County believes it does have a lien on the proceeds for the full amount <br /> of taxes due under schedule 7863. In addition, because the proceeds are subject to the <br /> bankruptcy order confirming the second amended plan of liquidation, we believe that <br /> these proceeds should be used first to pay all personal property taxes which should <br /> have been paid when the personal property and improvements were sold. Again, we <br /> have received no information from you concerning what that amount is. Thus, the only <br /> basis upon which we would settle the case now is that all the proceeds be released to <br /> Pitkin County, to be applied first to the total amount due under the personal property <br /> schedule, the balance under schedule 7863, and a recognition that Pitkin County has a <br /> lien on the remaining property owned by Mid-Continent for the balance due under <br /> schedule 7863. <br />