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FRQhNO.28a�94 2:13PM DMG,GJCT 1 303 2410336 P.3 <br /> TO! 1 303 2410336 NOU 29, t994 i1:42AM «186 P.03 <br /> 5. Aeeording to the sctLiement. agreement, ReaourcAs was to <br /> appear before the 13oard izi January ] 992 6rnd if it had not soa.d <br /> the site, PCGOUrCco was to prove its ability to perform <br /> reclamation according tn the schedule . In 0etnu4iLry 1992, <br /> Resourcen had failed to sell the site . The Board, hGwever, <br /> granted Resources a continuance of the hearing, ultimately to <br /> August 1992 . in the meantime, Resources filed for bankruptcy in <br /> Fahruary 1992 _ The bond Resources hr(I claimed waa sufficient to <br /> ensure rnmplete rcclamation of the mine ei.te was later found to <br /> be suhs•.tantially inadeev,itc to cover the coato of reclamation. <br /> In addition, Resources never fully pe-rformed the reclamation <br /> required by the Board. Accordingly, Resourcen' mine site remains <br /> In an unreclaimed state and maintenance of the site is recpjircd, <br /> 6 . In April 1994 , the bankruptcy court in Resources' case <br /> confirmed a liquidation plan to govern the diatribut.ion of: <br /> Resources' assets. The funding of the liquidation plan is <br /> continq,_,jit on sales of prcF>erty . Under the liqui6ation plan the <br /> Divir+inn nF Minerals and Geology is oilpposf-H to get $3 million <br /> for rrcl,imation purposes �esn t;,P prucee-Os from Lhe eale of the <br /> reckduor plant which wt%8 used by Reoources to ensure complete <br /> reclamatJori; tht value of reclamation work performed prior to the <br /> -ffective date of the liquidation plan being confirmed; and Lhe <br /> value of demolition work performed parauant to a contract <br /> Ppproved by the bankruptcy court. The Dlvieion is to rec:cive 69V <br /> of 611 sale procecda until the amount in the liquidation plan is <br /> met . <br /> 7. As stated above, the- avniJAhil'_ty of funds from the <br /> liquidation plan is dependenL on role of property nontained ,in <br /> the bankruptcy estate. To elate, the only pale of property in <br /> Resources' estate from the Division has received proceeds <br /> is Live eale of Lied roCY,dutst i.lant . The net proceeds were in the <br /> amount of about $343 . 000 . There. in no certainty ahout whether <br /> further proceeds will Lecomr nvnilable, ur when any such procecdn <br /> will become available thrcnjgh ti:A l lquid0tion pleln. <br /> 8 . In tiles paut 16 +'•nnths corr t r' n rrel amation Rnd <br /> maintenance wor.- hao beer, dcne nt. r.he sito with us,- of fundn from <br /> keSources' estate- Ultir.atte!ly the r*ooney uaed for this work will <br /> come out of the Division' s r.:,are of tunds it is to get from the <br /> liquidation plan. AlthouglA some work has been done, further <br /> maintenance must be pertormotM at ttic nits and full reclamation of <br /> the site must be completed. <br /> 9 . MaiuLenance _4r..: re---ama, ivsl of the eitc are neccvvary to <br /> minimize_ the potential fyr environ:ac•nra1 damage . Without <br /> maintenance and reclamation, there is a potential for <br /> onvi rorimentol harm to land and wtat.ar ru aourccea. <br /> -2- <br />