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OF'Cp <br /> o <br /> 18Tg <br /> GALE A. NOR STATE OF COLORADO STATE SERVICES BUILDING <br /> Attorney Generalral 1525 Sherman Street-5th Floor <br /> DEPARTMENT OF LAW Denver Colorado 80203 <br /> MARTHA PHILLH'S ALLBRIGHT Phone(303) 8664500 <br /> Chief Deputy Attorney General OFFICE OF THE ATTORNEY GENERAL FAX (303) 866-5691 <br /> RICHARD A. WESTFALL <br /> Solicitor General <br /> May 28, 1997 <br /> Robert Delaney <br /> Mid-Continent Resources, Inc. <br /> P.O. Drawer 709 <br /> 818 Colorado Avenue <br /> Glenwood Springs, CO 81602 <br /> RE: CD submitted on Mid-Continent Quarry <br /> Dear Mr. Delaney: <br /> The Division has received your letter of May 22, 1997, and <br /> the certificate of deposit of $6, 213 to be used as bond for the <br /> Mid-Continent Quarry. In your letter, you state that MCR intends <br /> to credit the $6, 213 against the 11$3 , 000, 000 Environmental Fund. " <br /> If by 11$3 , 000, 000 Environmental Fund" you mean the funds to <br /> be distributed and used for reclamation of the coal site under <br /> MCR' s liquidation plan, the Division objects to crediting MCR' s <br /> bond for a continuing minerals permit against the coal funds the <br /> Division is to receive under MCR' s liquidation plan. The <br /> liquidation plan does not allow for this credit, and the posting <br /> of an additional bond for the quarry is an on-going business <br /> expense, not a coal reclamation expense . <br /> Under the liquidation plan, DMG received $7, 000 in cash for <br /> the pre-petition reclamation liability for the Mid-Continent <br /> Quarry. However, MCR has chosen to continue the Mid-Continent <br /> Quarry as an on-going business despite its bankruptcy. As such, <br /> the posting of an additional bond for the quarry as required by <br /> law is a business expense, and should not be claimed as a credit <br /> against coal reclamation funds . The Division hereby objects to <br /> any credit against the coal reclamation funds for expenses <br /> required by MCR' s quarry permit . <br /> Please note that by accepting and depositing the certificate <br /> of deposit of $6, 213 as bond for the Mid-Continent Quarry, and <br /> thereby allowing MCR to come into compliance with bonding <br /> requirements, the Division is NOT waiving objection to MCR' s <br /> crediting this amount against the coal funds the Division is to <br /> receive under the liquidation plan and hereby reserves its right <br />