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STATE OF COLORADO <br /> MINED LAND RECLAMATION DIVISION Coto <br /> Department of Natural Resources e j �9c <br /> 1313 Sherman St., Room 215 <br /> Denver,CO 80203 <br /> 303 866-3567 */876 <br /> FAX. 303 832-8106 - <br /> Roy Romer. <br /> Governor <br /> Fred R Banta, <br /> Division Director <br /> December 27, 1991 <br /> Mr. W. Hord Tipton <br /> Office of Surface Mining <br /> Reclamation and Enforcement <br /> Washington, D. C. 20240 <br /> RE: Mid-Continent Resources - Coal Basin Mine (File No. C-81-017) <br /> Dear Mr. Tipton: <br /> Mid-Continent Resources operates the Coal Basin Mine located in Pitkin and <br /> Garfield Counties, Colorado. This site experiences arguably the most severe <br /> winter weather conditions of any coal mine in the country. As a result of <br /> these climatic conditions , historic mining and poor operating practices, the <br /> potential for off-site damage from this site is high. <br /> Due to an established pattern of violations , the Division issued Mid-Continent <br /> a Show Cause Order in 1990. As a result of the Show Cause Order, <br /> Mid-Continent and the Division entered into a Settlement Agreement. This <br /> Agreement requires that Mid-Continent either transfer the permit to a <br /> qualified buyer or demonstrate the financial capability of reclaiming the <br /> mine. The transfer or financial demonstration must be made by January 15, <br /> 1992. Failure to meet the terms of the Agreement will result in permit <br /> revocation and bond forfeiture on January 23, 1992. It is becoming <br /> increasingly apparent that Mid-Continent will not be able to fulfill the terms <br /> of the Agreement. Therefore, we anticipate that revocation and forfeiture <br /> will occur in January. <br /> Colorado had accepted an industrial facility and the associated real estate as <br /> the reclamation bond. The property is valued at over $3 million. In order to <br /> secure funds to reclaim the site, the State will have to obtain title to the <br /> property and then liquidate it. This process could take over eight months to <br /> complete. <br /> However, due to the conditions at this site, the requirement for on-going <br /> maintenance is heightened. This is particularly true in regard to minimizing <br /> pollution to the adjacent Crystal River. We estimate that $20,000 for <br /> maintenance is required while we liquidate the property bond assets. <br />