_GENERAL DOCUMENTS - C1981017 (181)

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RED DISTRICT COURT, PITKIN COUNTY, COLORADO APR 1 " 1,T?4 Case No. 93 CV 201 ----------------------------------------------------------------- RESPONSE TO MOTION TO DISMISS ----------------------------------------------------------------- DIVISION OF MINERALS AND GEOLOGY, DEPARTMENT OF NATURAL RESOURCES, STATE OF COLORADO Plaintiff, V. JOHN A. REEVES; ROBERT DELANEY; DIANE DELANEY; AND MID-CONTINENT MINERALS CORPORATION, Defendants. ----------=------------------------------------------------------ The plaintiff, by and through the Colorado Attorney General's Office, responds as follows to the defendants' Motion to Dismiss: Statement of Facts Mid-Continent Resources, Inc. ("Resources") operated a coal mine in Pitkin and Gunnison counties. Defendant John Reeves is the president and a director of Resources; defendant Robert Delaney is a vice-president and a director of Resources; defend- ant Diane Delaney is the permitting contact for Resources; de- fendant Mid-Continent Minerals Corporation ("Minerals") is the parent company of Resources and wholly owns Resources. In the 19801s, Resources and Minerals, as co-obligors, bor- rowed approximately $52 million to make changes to Resources' mine site. The officers of Minerals include defendant John Reeves as secretary and a director, and defendant Robert Delaney as president and as a director. Eventually, in 1988, the FDIC wrote off $34 million of Resources' and Minerals' debt. In the meantime, Resources continued to operate the mine, and submitted a bond to the Division of Minerals and Geology ("Division") to ensure reclamation of the site. The bond is in