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From ROBERT DELANEY PHONE No. : 9303 945 5642 Aug.28 1993 8:17PM P01 <br /> The activities presently occuring at Coal Basin Include liquidation of assets, <br /> dismantling and removal of structures, sealing portals and various site <br /> maintenance and reclamation activities. <br /> Such activates are under the direction of Mid-Continent Resources, as debtor-in- <br /> possession of the property, subject to approval by the bankruptcy court. <br /> Mid-Continent Resources has contracts with several entities to carry out sales of <br /> machinery and equipment, removal of structures and sealing of the portals; Mid- <br /> Continent properties are listed for sale under an agreement with a real estate <br /> broker. <br /> Site maintenance and reclamation activities are directed by Mid-Continent <br /> Resources. Costs of such activities are paid by Mid-Continent Resources from <br /> the sale of MCR assets, as approved by the bankruptcy court. All personnel <br /> engaged In such site maintenance and reclamation activities report to John <br /> Reeves, the president of Mid-Continent Resources, as is indicated in the permit. <br /> Mid-Continents workers compensation coverage was cancelled in January of <br /> 1991, which precipitated the cessation of mining activities by Mid-Continent. <br /> Since that time, Mid-Continent has used the services of several companies, one <br /> of whom is Pitkin Iron, to provide workers to carry out necessary maintenance <br /> activities and reclamation work, as a means to ensure the workers on site have <br /> the necessary worker's compensation coverage. Mld-Continent Resources pays <br /> the payroll costs, plus a fee, for this service, <br /> (b) The following relationships are presumed to constitute ownership or control <br /> unless it can be demonstrated that the person subject to the presumption does <br /> not in fact have the authority directly or indirectly to determine the manner in <br /> which the relevant surface coal mining operation is conducted. <br /> (i) Being an officer or director of an entity; <br /> Response: Officers and directors of MCR are as indicated in the permit. <br /> (133) "Surface coal mining[and reclamatton operations"]means surface <br /> coal mining operations and all activities necessary and incident to the <br /> reclamation of such operations. <br /> Note., re-clamation operations are specifically Identified in the definition, <br /> and so are not implicit in the term "surface coal mining"as it appear here.. <br /> 3 <br />