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5TATE OF COLORADO <br /> DIVISION OF MINERALS AND GEOLOGY <br /> Department of Natural Resources P IV 74, <br /> 1 313 Sherman St, Room 215 <br /> Denver,Colorado 80203 <br /> Phone (303)866-3567 <br /> FAX:(303)8 32-8106 <br /> DEPARTMENT OF <br /> May 8, 1996 NATURAL <br /> RESOURCES <br /> Roy Romer <br /> Governor <br /> Richard Harlan James S <br /> ad <br /> Harlan and Associates Executive Director <br /> 3190 South Wadsworth Boulevard Michael B Long <br /> Lakewood, Colorado Division Director <br /> 80227 <br /> RE: Coal Basin Work Plan <br /> Dear Mr. Harlan: <br /> The Division of Minerals and Geology has reviewed the Work Plan <br /> prepared by Harlan and Associates for the Coal Basin property. We <br /> would like to share with you our comments and questions, which <br /> follow. <br /> 1. As a point of clarification, the Division and Mid-Continent <br /> Resources (Resources) have not entered into an agreement, per se, <br /> which outlines the scope of the parties responsibilities at the <br /> Coal Basin Mine. Rather, a number of statutory requirements govern <br /> the division of responsibilities at the site. The bankruptcy <br /> liquidation plan outlines the responsibilities of Resources in <br /> providing monies to various accounts, such as the reclamation fund <br /> or the environmental fund. Expenditure of monies from any one fund <br /> is also regulated by the liquidation plan. Minerals and Geology is <br /> accomplishing reclamation of the site as required by the Colorado <br /> Surface Coal Mining Reclamation Act. Funding is provided through <br /> the liquidation of Resources estate. Resources remains responsible <br /> for point source discharges via their National Pollutant Discharge <br /> Elimination System (NPDES) permit, and is also responsible for <br /> compliance with other applicable environmental statutes. <br /> The liquidation plan requires that this audit, other studies and <br /> any clean up activities which result from these investigations <br /> shall be paid by funds other than those earmarked for reclamation <br /> of the mine site, in that these activities are required by laws <br /> other than the Colorado Surface Coal Mining Reclamation Act. <br /> 2. Section 1.2 states that additional investigations may be <br /> proposed if environmental liabilities are identified during the <br /> initial investigation. Please define the term 'environmental <br /> liabilities' . Investigations beyond the initial site assessment <br /> will be conducted based upon this criteria, and therefore, no <br /> ambiguity in the term or criteria should exist. <br />