1992-08-26_GENERAL DOCUMENTS - C1981017

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y Minutes, March 25-26, 1992 . 11 Staff Presentation by Anthony Waldron: 7. DISCUSSION ITEM MID-CONTINENT RESOURCES INCORPORATED File No. C-81-017 COAL BASIN MINES 818 Colorado Avenue P. 0. Box 1298 Glenwood Springs , CO 81601 Mine Site located in Secs . 31 and 32, T9S, R89W; Secs. 5-8, 10-12, 14-21 and 28-30, TIOS, R89W; Sec. 36, T9S, R90W; Secs. 1 , 2, 11-14 and 23-25, T10S, R90W, all in 6th P.M. , Pitkin and Gunnison Counties. Rail loadout located in SE 1 /4 Sec. 35, T7S, R88W, 6th P.M. , Garfield County, 11 ,386 acres ; underground coal . Monthly update on continuation of Show Cause (why permit should not be suspended or revoked) ; no specific Board action requested at this Meeting. During the February 1992 Board Meeting, consideration of additional action regarding this matter was continued to the May 1992 Board: Meeting. Staff said the following issues need to be resolved prior to the May 1992 Board Meeting: 1 ) status of negotiations with Geneva Steel to purchase or lease the mine, 2) results of an inspection conducted at the rock dust plant and 3) a creditors ' meeting held on March 23, 1992, in conjunction with the operator' s Chapter 11 bankruptcy proceedings . Staff said that since the February 1992 Board Meeting, the operator and Geneva .Steel have reached agreement on a term• sheet. which -.is• subject to .limitations and "conditions, 'a-s- well -as' approval -throbgH- the " bankruptcy courts . The term sheet provides guidelines for a transaction and an agreement to occur. Other areas to be covered by the term sheet include abatement of existing violations and obtaining a local land use permit through Pitkin County. The condition-satisfaction period ends October 1 , 1992; closing must also occur by that time. Staff said that an agreement must be executed between the parties no later than April 1 , 1992. Staff said the Division feels the operator and Geneva Steel have made positive steps in resolving this matter through providing a signed copy of the term sheet, as well as a commitment to produce a signed agreement prior to the May 1992 Board Meeting. Staff further stated that the Division will request that an action be taken during the May Meeting to require either initiation of reclamation or bond forfeiture . Mr. Jim Holden, representing the operator, said they plan to have an agreement signed by April 10, 1992. He discussed some of the components of the term sheet. Mr. Holden discussed issues that will affect establishment of the agreement. The term sheet contemplates that the Board will release the operator from its existing reclamation obligations and substitute the purchaser (of the mine) . He clarified that Crystal Springs Coal Incorporated, a Utah-based , wholly owned subsidiary of Geneva Steel , is the intended purchaser.