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STATE OF COLOMDO <br /> DIVISION OF MINERALS AND GEOLOGY <br /> Department of Natural Resources PFW,7,W' ik <br /> 1313 Sherman St.,Room 215 <br /> Denver,Colorado 80203 <br /> Phone.(303)866-3567 VOON <br /> FAX (303)832-8106 <br /> DEPARTMENT OF <br /> NATURAL <br /> RESOURCES <br /> MEMO <br /> Roy Romer <br /> Governor <br /> March 30, 1994 Ken Salazar <br /> Fxecutive Director <br /> TO: Jim Lochhead, Executive Director Michael B Fong <br /> \� Division Director <br /> FROM: ' Michael B. Long, Division of Minerals and Geology <br /> RE: Mid-Continent Resources <br /> I understand that there are some lingering questions regarding <br /> certain aspects of the Mid-Continent situation. I am providing <br /> responses to the questions as I understand them. <br /> * Are the Division and Mid-Continent working in a cooperative <br /> mode? <br /> Division staff and the Mid-Continent reclamation consultant are <br /> working cooperatively to define reclamation tasks and a <br /> reclamation schedule which need to be accomplished at the mine <br /> site. However, the Board has filed a law suit against the agents <br /> of Mid-Continent Resources in order to compel reclamation of the <br /> site. The suit was filed due to the enormous insufficiency of <br /> the reclamation bond. On this level, the Division and Mid- <br /> Continent are at odds. <br /> * Who will accomplish reclamation this year? <br /> The Division advised Mid-Continent Resources and its counsel in <br /> January, 1994, that Mid-Continent would need to undertake <br /> reclamation of the mine site during the 1994 construction season. <br /> The Division also advised Mid-Continent that the State would <br /> probably undertake reclamation in subsequent years. Reclamation <br /> conducted after 1994 will be done in accordance with the State <br /> contracting requirements. <br /> * Where will the money for reclamation come from? <br /> Reclamation work will be funded from two sources as described in <br /> the liquidation plan filed by Mid-Continent Resources earlier <br /> this year. The reclamation bond, a first lien against a Rock <br />