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The Honorable Dave E. Wattenberg -2- March 30, 1994 <br /> How will monies be distributed to fund reclamation? <br /> The liquidation plan filed by Mid-Continent Resources earlier this year requires that the <br /> proceeds of sales will be returned to a trustee. The plan states that the sales proceeds <br /> will be split between the State and the unsecured creditors at an approximately <br /> 70%:30% ratio respectively. Although it is unclear in the plan how money will be <br /> distributed from the trustee to the reclamation contractor (whether that is <br /> Mid-Continent or a State contractor), it is assumed that such distributions will be made <br /> only after the Division has inspected and approved any reclamation work <br /> accomplished. This mechanism must still be refined. <br /> There are ten weeks left until construction season begins. What work is to be done this <br /> year? <br /> Mid-Continent and the Division met in January 1994 to negotiate a reclamation <br /> schedule. The parties substantially agreed to this schedule. The Division staff is <br /> currently refining the schedule by adding detail so that all involved agencies, the public, <br /> Mid-Continent, the trustee and the court can measure progress accurately. This <br /> schedule will be attached to the liquidation plan under consideration by the bankruptcy <br /> court. <br /> What if money sufficient to accomplish reclamation isn't available through the liquidation <br /> plan? <br /> To ensure that reclamation is completed, the State has filed a personal liability suit <br /> against the agents of Mid-Continent Resources. The suit requests that the agents of <br /> the company either perform reclamation or provide funding to the State so that a <br /> contractor can accomplish the reclamation. There are no sources of reclamation <br /> funding available at either the State or Federal level. Ultimately, it is the responsibility <br /> of the permittee and its agents to finance and perform the reclamation plan. <br /> What if there is an environmental emergency at the mine? <br /> Mid-Continent Resources is still physically present at the mine site. Should an <br /> emergency occur, the State will initially rely upon Mid-Continent to alleviate the <br /> situation. If Mid-Continent fails to address an emergency situation, legal actions will <br /> be pursued. The State has also obtained verbal confirmation from the U.S. Forest <br /> Service that it would provide personnel and machinery to help alleviate an emergency <br /> situation in the event that Mid-Continent is uncooperative. <br /> How is the Division interacting with the Forest Service, Office of Surface Mining and the <br /> Department of Health? <br /> The Division and the Forest Service have met on a number of occasions to discuss <br /> reclamation issues of mutual interest. Particularly, water management, road and <br /> highwall reclamation issues have been discussed. These issues have been substantially <br /> addressed and resolution achieved by the two agencies. The Division and the Office of <br />