Title
Approval of Amendment No. 1 to the Amended and Restated San Juan Generating Station Mine Reclamation Trust Agreement Designating Westmoreland San Juan Mining, LLC as Successor and Assignee of San Juan Coal Company as Beneficiary of the San Juan Mine Reclamation Trust Fund Pursuant to the Amended and Restated San Juan Generating Station Mine Reclamation Trust Funds Agreement
Recommended Action
I move that Council approve Amendment No. 1 to the Amended and Restated San Juan Generating Station Mine Reclamation Trust Agreement
Utilities Manager's Recommendation
The Utilities Manager recommends that Council approve the amendment as presented.
Board, Commission or Committee Recommendation
The Board of Public Utilities recommends that Council approve the amendment as presented.
Body
Under the Terms of the San Juan Generating Station Mine Reclamation and Trust Funds Agreement between the San Juan project participants, each participant was obligated in 2012 to establish a Trust Fund with an approved Trustee to fund that participant’s obligations under that agreement. Funding of those trusts was required over a subsequent time period, depending on each participant’s election as an “Opt -In” or an “Opt Out” participant. Los Alamos established it’s required trust with BOKF, N.A., dba Bank of Albuquerque, in 2012 and funded it appropriately according to our obligation.
In 2016, as part of the San Juan restructuring, an Amended and Restated San Juan Generating Station Mine Reclamation and Trust Funds Agreement between the San Juan project participants was executed, recognizing the new different status of the various participants, and specifying the Trust funding obligations of each. Los Alamos’ funding obligations remained unchanged, and our Trust remains fully funded at this time.
This current action is required because Westmoreland Coal Company, successor to San Juan Coal Company and named beneficiary under the trust agreement, filed for bankruptcy on Oc...
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