_GENERAL DOCUMENTS - C1981017 ‎(254)‎

• Permit No: C1981017
• IBM Index Class Name: GENERAL DOCUMENTS
• Doc Name: Bid Documents ‎(IMP)‎ 1994 Correspondence
• Permit Index Doc Type: General Correspondence
• Media Type: D
• Archive: No

5TATE OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
Department of Natural Resources
1313 Sherman St.,Room 215
Denver,Colorado 80203
Phone-[phone]
FAX [phone]
DEPARTMENT OF
NATURAL
March 30, 1994 RESOURCES
Roy Romer
Governor
The Honorable Dave E. Wattenberg
Ken Salazar
The State Senate Executive Director
Capitol Building Michael B Long
Denver, CO 80203 Division Director
Re: Mid-Continent Resources
Dear Senator:
understand that you have some questions regarding certain aspects of the Mid-Continent
Resources Coal Basin Coal Mine situation. I am providing responses to the questions as
understand them.
Are the Division and Mid-Continent working in a cooperative mode?
Division staff and the Mid-Continent reclamation consultant are working cooperatively
to define reclamation tasks and a reclamation schedule which need to be accomplished
at the mine site. However, the Board has filed a law suit against the agents of Mid-
Continent Resources in order to compel reclamation of the site. The suit was filed due
to the enormous insufficiency of the reclamation bond. On this level, the Division and
Mid-Continent are at odds.
Who will accomplish reclamation this year?
The Division advised Mid-Continent Resources and its counsel in January 1994 that
Mid-Continent would need to undertake reclamation of the mine site during the 1994
construction season. The Division also advised Mid-Continent that the State would
probably undertake reclamation in subsequent years. Reclamation conducted after
1994 will be done in accordance with the State contracting requirements.
Where will the money for reclamation come from?
Reclamation work will be funded from two sources as described in the liquidation plan
filed by Mid-Continent Resources earlier this year. The reclamation bond, a first lien
against a Rock Dust Plant in Carbondale, will be liquidated, and the proceeds will be
dedicated for reclamation. About $300,000 may be generated from this sale. The
liquidation plan requires that the proceeds from the sale of other Mid-Continent
properties will provide funds sufficient to accomplish the remaining reclamation at this
site.