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Minutes, February 26-27, 1992 32 <br /> Staff said a sale agreement has not been reached between the 2 parties, <br /> Mid-Continent and Geneva Steel , and, therefore, the Division is not <br /> assured that there will be a new permittee for this site and has not <br /> made a decision about proceeding with bond forfeiture. <br /> Staff said the Division' s understanding is that there is an intent to <br /> lease the site being negotiated between Mid-Continent and Geneva Steel , <br /> however that deal has not yet been closed. <br /> Staff stated that the operator has filed for Chapter 11 bankruptcy, <br /> since the January 1992 Board Meeting. The Division has hired a <br /> bankruptcy attorney, Mr. Steve Smith, through the Attorney General ' s <br /> Office. However, Mr. Smith was unable to attend today' s hearing to <br /> provide an update, regarding the filing and his analysis of the status <br /> of the Division' s claims . <br /> Mr. Frank Johnson, Assistant Attorney General , discussed the bankruptcy . <br /> proceedings with the Board. He said secured claims will be paid first, <br /> then - administrative. fees and. unsecured- claims.' Mr. - Johnson - said the <br /> operator has indicated they have about $55 million in total <br /> liabilities; $38.6 million are in secured claims, with $4.7 million in <br /> assets. <br /> Mr. Johnson said the Division holds a secured claim of $3 million for <br /> reclamation costs through a deed of trust covering a rock dust plant at <br /> the site. He said that at this time, the operator is negotiating with <br /> Geneva Steel , who desires to lease the entire site, including the rock <br /> dust plant. In that case, Geneva Steel would permit the site and <br /> provide . the appropriate bond. .. Mr.. Johnson said that if the :. <br /> negotiations fa-i1 , -the Division- wiIT proceed through the ' bankrup-tcy <br /> process, to sell the rock dust plant and use the funds for reclamation <br /> of the site. <br /> Staff said the Division is not proceeding with efforts to forfeit the <br /> bond at this time, in order to give the operator time to negotiate the <br /> lease/purchase agreements . The immediate concern of the Division is <br /> that the site be maintained during the operating season; there are no <br /> major environmental problens during the winter. <br /> The Division has had discussions with the operator and Geneva Steel , <br /> regarding the maintenance of the site . Staff said that, hopefully, <br /> either the operator or Geneva will conduct maintenance through the <br /> lease agreement. Staff said that if the agreement does not work out, <br /> the Division will request that the bankruptcy court allow funds to be <br /> available, so the debtor in possession of the site can conduct <br /> maintenance. <br /> Staff stated that another concern of the Division relates to total site <br /> reclamation. The Board established a reclamation plan during the May <br /> 1991 Board Meeting, and that plan is still in effect. Under that plan, <br /> reclamation would begin this summer. Maintenance of the site includes <br /> normal site up-keep, as well as the abatement of certain notices of <br /> violation issued during 1991 , regarding erosion and sediment control . <br />