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OBJECTIONS TO THE BID PACKAGE <br /> BID NO. MVC-MINES-345 <br /> Coal Basin/Sutey Pile Permit Revocation, C-81-017 <br /> The Bid Package distributed by the Division of Minerals and Geology (DMG) <br /> representatives at a pre-bid meeting on September 12, 1994 at Coal Basin does <br /> not conform to the approved reclamation plan. This is contrary to both the <br /> regulatory requirements and the provisions of the bankruptcy plan. <br /> REGULATIONS <br /> Forfeiture of Performance Bonds. <br /> 3.04.2(4) Proceeds of forfeited bonds shall be deposited by the Division in a <br /> separate reclamation account...Said proceeds shall be used by the Division for <br /> reclamation of the area covered by the bond. Said reclamation shall include all <br /> costs and administrative expenses associated with conduct of reclamation <br /> activities required to complete the applicable approved reclamation plan.... <br /> BANKRUPTCY PLAN <br /> Timing of Distributions and Expenditure of Funds. <br /> 4.03.4 Funds received by the MLRB pursuant to Sections 4.3.1 and 4.3.2 of the <br /> Plan shall be expended by the MLRB pursuant to the Reclamation Plan.... <br /> The DMG Bid Package violates a number of other statutory and regulatory <br /> requirements as well. See Attachment A. These departures have the potential <br /> to degrade the environment and cause property damage. <br /> To the extent that the specifications for work differ from the approved plan of <br /> reclamation (as contained in Permit C-81-017) and the applicable regulatory <br /> requirements, Mid-Continent believes that the DMG exceeds its right to enter the <br /> property and perform reclamation. <br /> At the same time, the DMG Bid Document entirely disregards the property <br /> owner, and adversely impacts the rights of adjacent property owners. <br /> Further, the DMG bid package adds unnecessary expense to the reclamation of <br /> the mine by creating a cumbersome bid process which increases risk to the <br /> contractor, and by requiring unnecessary work. <br /> Mid-Continent Resources' specific objections to the DMG Bid Package are <br /> summarized under the following several categories: <br /> I. The Drainage Plan. <br /> II. Property Rights Issues. <br /> III. Poor Timing. <br /> MCR Objections/DMG Bid <br /> Page 1 <br />