1993-06-17_ENFORCEMENT - C1981017 (6)

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PARCEL, MAURO, HULTIN & SPAANSTAA, P C. ATTORNEYS AT LAW BY FEDERAL EXPRESS SUITE 3600 1801 CALIFORNIA STREET DENVER, COLORADO 80202 -2636 TELEPHONE (303) 292 -6400 TELECOPIER (303) 295 February 3, 1994 Ms. Sandra L. Brown, Conference Officer Colorado Department of Natural Resources Division of Minerals and Geology 1313 Sherman Street Denver, Colorado 80203 Re: Mid - Continent Resources, Inc. - Settlement Agreements Associated with Notices of Violation ( "NOV ") C -93 -090, C -93 -091, C -93 -092, C -93 -095, C -93 -096 and C -93 -097 Dear Ms. Brown: We have enclosed executed settlement agreements for Notices of Violation C -93 -090, C -93 -091, C -93 -092, C -93 -095, C -93 -096 and C- 93 -097 issued by the Division to Mid - Continent Resources, Inc. As you know, the operator is the subject of proceedings pursuant to Chapter 11 of the United States Bankruptcy Code. We have been advised by the operator's bankruptcy counsel that the automatic stay provisions of the Bankruptcy Code enjoin the enforcement of a money judgement obtained in a proceeding to enforce state regulatory powers. Paragraph 2 of the Settlement Agreement therefore should provide that "The penalty shall be paid to the Division by the operator not later than 30 days from the date thereof subject to any applicable provisions of the U.S. Bankruptcy Code." Because of the pending bankruptcy, we do not believe that payment of the penalty will in fact be made within 30 days. Diane Delaney has signed the Settlement Agreements on behalf of Mid - Continent Resources, Inc. as debtor in possession pursuant to Chapter 11 of the United States Bankruptcy Code. Finally, we would note that the "Fault" portion of the Settlement Agreement Justification for NOV C -93 -091 states, "They [representatives of MCR] did feel they were negligent." We believe this was a typographical error, and that the sentence should read,