Laserfiche WebLink
Minutes, January 2243, 1992 21 <br /> The Division entered into a Settlement Agreement, EXHIBIT A, adopted as <br /> a Board Order on May 22, 1991 , to address the problems at the site. A <br /> provision of the Agreement was that the operator not contest <br /> revocation, if the State allowed time for the transfer of the property <br /> to a buyer. The buyer would be required to demonstrate the ability to <br /> mine and reclaim the site according to the approved/amended plans. <br /> Staff said that the operator is in the process of sales negotiations <br /> with a potential buyer, and the May Order allows the Division to enter <br /> into good faith negotiations with the operator and the buyer, in order <br /> to achieve a permit transfer and the submittal of an appropriate bond. <br /> Mr. Frank Johnson, Assistant Attorney General representing the <br /> Division, addressed the Board and clarified that the Division does <br /> support the request for a continuance of this matter to the February <br /> 1992 Board Meeting. This will allow the Division to determine whether <br /> all possibilities for selling the mine have been exhausted, prior to <br /> revoking the permit or requiring the operator to .commence reclamation. <br /> Mr. Johnson stated that if a ' sal es agreement is reached, there would <br /> probably be a number of conditions attached to the sale, including <br /> transfer of the permit. <br /> Mr. Johnson stated that the Division holds a deed of trust on a rock <br /> dust plant located on the site. He said that, to his knowledge, the <br /> operator is trying to sell the rock dust plant, as well as the mine. <br /> Mr. Robert Delaney, general counsel for the operator, said that the <br /> operator concurred with the statement made by Mr. Johnson regarding <br /> continuance of this matter. He stated that the operator retained a <br /> consultant in February of 1991 , i.n order . to help sell.. the . property.. . <br /> Mr. . --Delarrey. said, that another --prospectiv'e ' bvyer"for the ' site . did <br /> extensive due diligence, but decided not to finalize contracts . <br /> Mr. Delaney said Geneva Steel , who was a customer for the coal from the <br /> site, came forward when a suitable buyer or operator could not be <br /> located. Because of the need for the coal produced at the mine, Geneva <br /> Steel is contemplating purchasing the mine. <br /> Mr. Delaney said the operator feels a favorable resolution to the <br /> problem would be to sell the mine to Geneva. Steel , so they can go <br /> through ` the process ' to reopen the mine,* perform reclamation <br /> requirements, settle the bonding question, etc. He said the <br /> alternative would be to put the mine in a salvage condition and that <br /> the operator has done inconsistent planning along those lines . <br /> Mr. Delaney further stated that while Geneva Steel is conducting due <br /> diligence , the operator has been conferring with experts in the field <br /> of reclamation and salvage, as well as with the Division. He <br /> referenced EXHIBIT B, a January 21 , 1992 letter, and stated that the <br /> purpose and intent of the operator is to cooperate with the Division in <br /> an attempt to secure reclamation of the property. Mr. Delaney said <br /> that in view of the fact that bankruptcy is contemplated and the <br /> deficiency of bonding values in regard to the security, there will <br /> probably be some difficulty satisfying creditors while providing the <br /> funds necessary to complete reclamation. <br />