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With
the completion of the conversion of Kaiser into a limited liability company,
the principal elements of our current strategy are:
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To complete
the sale of the landfill project at the Eagle Mountain Site and to resolve
the
related outstanding federal land exchange litigation. We received an adverse
decision in the federal land exchange litigation in September 2005 and this
decision is being appealed to the 9th Circuit Court of Appeals. It will take
several years for the appeal process. This sale is subject to the satisfaction
of numerous conditions. As a result, we cannot be sure that this sale will
close as the closing date has already been extended a number of times. The
conditions to closing are not expected to be met by the current expiration
date, and the parties will have to individually determine whether to extend
the period one or more additional times. There is no assurance that the parties
will continue to
extend the
closing
date. Even if the sale is completed, we do not expect to receive any cash from
the sale until the related land exchange litigation matter is favorably
resolved. If the current land exchange litigation is not favorably resolved,
Mine Reclamation may attempt to cure any defects in the land exchange so
that a sale of the landfill project could still be completed. However, if
the litigation is not favorably resolved, or if Mine Reclamation cannot otherwise
cure outstanding title and other closing issues
in a timely fashion, then the District would probably not purchase the landfill
project and Kaiser would seek another approach to the landfill
project or abandon
it. Although a definite time period for curing any defects has not yet been negotiated
with the District, it could take a substantial period of time.
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To continue
to hold our 50% interest in West Valley MRF, which pays cash distributions
to Kaiser, until we believe its is appropriate to maximize member value for
this asset through a sale or other alternative transaction;
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To sell our
remaining miscellaneous assets such as surplus property in Southern California;
and
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