1998-09-21_GENERAL DOCUMENTS - C1981017

Home Browse Search

09/21/98 14:44 FAX 3037962777 BUR\S FIGA & WILL 1jn 008/012 C: 1 1. 25. Defendants have requested DMG account for Creditors' Trust funds provided it, l state the amount of Creditors' Trust monies on hand, and state what Creditors' Trust funded reclamation work, if any, remains to be done in Coal Basin. DMG has provided information in response to Defendants' request for an accounting, but the information lacks sufficient detail for : Defendants to determine the true status of funding and reclamation. ` r 26. The Bankruptcy Liquidation Plan-mandates development of a Reclamation Plan schedule to be negotiated among the "Debtor [MCR], the DMG, and the MLRB." (Plan § 4.3.4.) Despite repeated requests on behalf of NICR, DMG has neglected and refused to negotiate a schedule" to achieve "completion of principal reclamation activity at the Mine Site prior to December 1. 1996"as required by the Bankruptcy Liquidation Plan, id. ; SECOND CLAIM FOR RELIEF (Breach of Contract Steep Slope Vegetation) F 27. MCR and the Creditors' Trustee hereby incorporate all previous averments as if set forth in full. 28. DMG's mine reclamation activity in Coal Basin and near Carbondale, Colorado, is t expressly subject to the provisions of the Liquidation Plan which incorporates the Reclamation i Plan. L u. 29. In carrying out the reclamation activities under the Reclamation Plan, DMG is �. acting pursuant to a contract entered into by, among others,DMG, MCR and MCR's creditors who r are all parties to and bound by the Liquidation Plan,which was approved by the Bankruptcy Court. i 30. As part of its reclamation activity, DMG has spent and has proposed spending t substantial sums from the reclamation fund for steep slope re-vegetation. 31. The Reclamation Plan no where calls for, allows or authorizes such steep slope re- k vegetation efforts as have been carried out and are contemplated by DMG. The DMG spent at least t; $72,260.00 in 1997 for steep slope re-vegetation-and has recently taken bids for additional steep F slope re-vegetation to be performed in 1998. 32. The steep slope re-vegetation is experimental and the 1997 steep slope re- vegetation has been a failure. 33, By expending reclamation fiords on steep slope re-vegetation,DMG has breached the contract it entered into as part of the Bankruptcy Liquidation Plan. r 34. MCR and the Creditors' Trustee have been damaged by the actions of DMG because less money will be available for payment of residual claims pursuant to Plan Section 4.3.5. The amount of damages will be proven at trial. I' i� AMENDED -6- TH1RD-PARTY CoNrnLArNc CtvtLNo.97 cv 131-3 �. F