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DMG states in its June 8 response that " The Division believes it has followed an appropriate <br /> course of action, according to its statutory and regulatory authority, to recover the reclamation <br /> costs for the Coal Basin Mine from forfeited funds and to secure the maximum amount of on-the- <br /> ground reclamation with the funds available." OSM agrees with DMG's response as stated for <br /> the following reasons: <br /> DMG had estimated the cost to the State of reclaiming planned mine disturbance should the <br /> permittee not perform the reclamation. Engineering/contract preparation and project management <br /> costs were estimated to be approximately $153,000 in the Coal Basin bond estimate. This <br /> amount was included in the $3 million dollars awarded to DMG during Mid-Continent Resources <br /> (MCR) bankruptcy and liquidation plan. <br /> DMG's annual budget requests since 1993, which include Federal grants and State funding, have <br /> clearly stated that a portion of program funds would be used to pay salary, travel, operating and <br /> capital expenses directly associated with DMG's reclamation work at the Coal Basin Mine. <br /> Funds currently being distributed to DMG by the bankruptcy trustee could be directed towards <br /> contract preparation and project management costs. DMG has chosen at this time to direct the <br /> funds towards actual on-the-ground reclamation. DMG states in their response it is their intention <br /> to continue application of the funds towards on-the-ground reclamation. OSM finds this <br /> approach benefits the public interest in Colorado. The December 27, 1996, Colorado Court of <br /> Appeals ruling allows the possibility of DMG pursuing additional funds from the agents of MCR <br /> should funds from the liquidation prove insufficient to conduct necessary reclamation. <br /> OSM finds the descriptions and documentation of DMG's activities towards administration of <br /> reclamation at the Coal Basin Mine, contained in DMG's response letters to OSM dated March <br /> 30, 1998, and June 8, 1998, are not arbitrary, capricious, nor an abuse of discretion under the <br /> State program. DMG is complying with Colorado Rule 3: 3.04.2(6) cited in the TDN, and their <br /> compliance constitutes good cause for not taking additional action in this matter in accordance <br /> with 30 CFR 842.11(b) (2). <br /> Please address any questions concerning this final response to me at(303) 844-1424, or to Henry <br /> Austin, Reclamation Specialist, at (303) 844-1466. <br /> Sincerely, <br /> James F. Fulton, Chief <br /> u Denver Field Division <br /> cc: Mr. Michael Mechau <br /> Mid-Continent Resources <br /> Regional Solicitors Office <br />