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Minutes, March 25-26, 1992 12 <br /> The new operator will be responsible for securing a permit from Pitkin <br /> County. Mr. Holden said Crystal Springs is currently working with <br /> Pitkin County, in order to establish a time table for public hearings , <br /> etc. <br /> Mr. Holden said negotiations are being held with the Minerals <br /> Management Service of the Department of Interior, regarding royalty <br /> rate reductions on the federal (mineral ) lease on which most of the <br /> coal is being mined. <br /> The last issue that will affect establishment of the agreement is <br /> bankruptcy court approval . Mr. Holden said this approval for the <br /> transaction is anticipated. <br /> Mr. Holden stated that Crystal Springs is currently providing funds to <br /> finance maintenance at the mine. He said Crystal Springs has agreed to <br /> pay, on an ongoing basis, 75%. or about $-124,000 of the approximately <br /> $150,000 monthly maintenance expenses . Mr. Holden also stated that <br /> Crystal Springs will terminate its funding obligation, if the deal <br /> involving their purchase 6f the mine is not finalized. ' However, the <br /> funds submitted by Crystal Springs to that point will not be returned. <br /> Mr. Holden stated that in that instance, the operator will move <br /> immediately toward permanent closure of the mine and commencement of <br /> reclamation. <br /> Mr. Holden stated that, according to the term sheet, the monetary <br /> advances made by Crystal Springs will be given a first position lien <br /> among the operator' s resources and assets and will be repaid under <br /> limited . circumstances. Although Crystal Springs will initiate a lien <br /> agai rist _ some ' of the operator' s property:, Mr. Holden= assured the Board <br /> that during discussions , Crystal Springs was made aware that the <br /> operator would not seek a first lien position on the rock dust plant. <br /> In response to a concern of the Board, Mr. Holden stated that research <br /> he has conducted indicated that the operator' s reclamation obligation <br /> to the State would be considered an administrative priority in the <br /> bankruptcy case. However, he clarified that the State would not have a <br /> senior lien on the property. Mr. Holden discussed this matter further <br /> with the Board and answered their questions . <br /> Staff referenced a memo to the Board and discussed the status of the <br /> rock dust plant. Staff said the information provided in the memo was <br /> the result of a discussion between the Division and Robert Delaney, who <br /> is managing the business aspects of the plant, and was verified through <br /> an inspection conducted by the Division. <br /> Staff said the rock dust plant consists of 3 units , the rock dust, the <br /> magnetite and a ready mix concrete, and that they were used to <br /> facilitate the mining activities associated with (Coal Basin) mine. <br /> Staff said the only unit working at this time is the rock dust mill and <br /> bagging facility. Rock dust is produced at the plant and sold to other <br /> coal mines throughout the west slope. Nahcolite is also bagged at the <br /> site and shipped to another state. <br />