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1. , <br /> STATE OF COLORADO <br /> DIVISION OF MINERALS AND GEOLOGY <br /> oF.Coto <br /> Department of Natural Resources <br /> '1313 Sherman St.,Room 215 * O„ <br /> Denver,CO 80203 <br /> Phone:(303)866-3567 <br /> }1876 r <br /> FAX:(303)832-8106 Roy Romer <br /> Governor <br /> MEMO Michael B.Long <br /> Division Director <br /> February 15, 1993 <br /> TO: Michael Long �] <br /> FROM: Steve Renner <br /> d <br /> RE: Mid-Continent Mine Status <br /> The Board revoked the Mid-Continent permit at its August, 1992 <br /> Meeting. Permit revocation was accomplished pursuant to a May, <br /> 1991 Settlement Agreement. The Division pursued revocation <br /> primarily because the potential buyer of the property had withdrawn <br /> from purchase negotiations. Due to the collapse of the sale, Mid- <br /> Continent could no longer assure the State that reclamation would <br /> occur according to the terms of the Settlement Agreement. <br /> Salvage of the underground equipment was finished by early October, <br /> 1992 . Equipment and ground water contaminants were removed from <br /> the mine at that time. The mine ventilation system and water pumps <br /> were also shut_ off in early fall, rendering the underground <br /> portions of the mine inaccessible. <br /> Since the revocation a number of activities have occurred. The <br /> Division initiated an intensive review of the currently approved <br /> reclamation plan. The purpose of the review is three fold. First, <br /> we want to ensure that the plan is sufficiently thorough so that <br /> there is no question as to the scope of reclamation work to be <br /> accomplished at the site. Second, the Division needs to be sure <br /> that the plan, when implemented, will be sufficient to ensure that <br /> off site impacts to adjacent lands and streams are minimized. <br /> Finally, when the review is finalized, the cost of completing the <br /> plan will be reevaluated. Dependent upon the outcome of the cost <br /> estimate, our unsecured claim in bankruptcy court may be adjusted. <br /> An up to date cost estimate also allows us to negotiate more <br /> confidently with either Mid-Continent, its successor or the other <br /> secured creditors. The review and cost estimate will be completed <br /> within the next three weeks. We will present our findings to Mid- <br /> Continent at that time in order to work out any areas of <br /> disagreement. <br /> The Division will be approaching the major secured creditor, Sanwa <br /> Business Credit Corporation, with the cost estimate in early <br /> spring. We have previously mentioned the possibility of Sanwa <br /> helping to finance all or part of the reclamation project in <br />