1994-03-21_GENERAL DOCUMENTS - C1981017

Home Browse Search

AUG 23 193 16:28 TO: 303 832 8106 P02 OPFICB Or GENERAL COUNCIL MID-CoNTIN$NT RwouRc2s, INC. P.O.DRAWW 7" I11 COLCnADO AVENUE TIFUMHONS GLENWOOD SPRINGS,COLORADO 81602 FAX AREA ODDS303 ARHA CODS 307 945.6546 August 23, 1993 s"s-1103 Mr. Steven G. Renner Mined Land Reclamation Division 1313 Sherman Street, Suite 215 Denver, CO 80203 Re: Reclamation Program - permit C-81-017-Coal Basin Mines Dear Mr. Renner: An untenable situation has developed with respect to reclamation of the permit area associated with the Coal Basin mines under Permit C-81-017. Mid-Continent Resources, Inc. (MCR) solicited and obtained approval by consent for expenditure of up to $300, 000 for certain defined functions in Coal Basin reclamation pursuant to Order of the Bankruptcy Court dated the 9th day of June, 1993. This was intended as an interim program so that work could be accomplished during the summer working season of 1993. it was intended that an additional funding arrangement for continuation of reclamation would be solicited and approved, presumably as a part of the Plan of Liquidation. At our request, you arranged a meeting, which we appreciate, with members of your staff and with Mr. Frank Johnson on July 23, 1993. At the conclusion of that meeting, it was my understanding that Mr. Johnson would within 30 days circulate a draft of agreement that would outline the direction your organization desires to follow with respect to the reclamation program and that would become a part of the Plan of Liquidation. We have not received draft of this agreement, but have received copy of letter from Mr. Johnson dated August 6, 1993 stating "DMG's concerns about the proposed Plan" . We have also received copy of statements from Mr. Neal L. wolf of Winston & Strawn on behalf of Sanwa and Mr. Stephen Seifert on behalf of the Creditors Committee. It is apparent there are major issues to be resolved and, according to the progress made thus far in the case, we may expect several weeks to elapse before anything definitive happens. The reclamation. work in Coal Basin will soon be stopped unless a funding arrangement can be developed to continue.