Us Realm Powder River, LLC f/k/a Moriah Powder Riv
Bankruptcy

Exhibit Exhibit D

District of Wyoming (Bankruptcy), wyb-2:2019-bk-20699

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Case 19-20699 Doc 616-4 Filed 06/07/21 Entered 06/07/21 11:35:06 Desc Exhibit Exhibit D Page 1 of 4 Exhibit D 6/7/2021 Case 19-20699 Doc 616-4 Filed 06/07/21 Mail - TomEntered 06/07/21 11:35:06 Bullock - Outlook Desc Exhibit Exhibit D Page 2 of 4 RE: US Realm - Johnson County litigation Tom Bullock <tbullock@BullockCoffman.com> Tue 5/18/2021 9:08 AM To: Bradley T. Hunsicker <BHunsicker@markuswilliams.com>; Barry Crago <bcrago@johnsoncowy.us> Cc: William Cross <WCross@markuswilliams.com> Brad, Carbon Creek is a separate legal entity that is not in bankruptcy and I assume that you do not represent Carbon Creek. We have been very clear that in the case of Johnson County v. Carbon Creek, we are not seeking assets of US Realm and that the John Does in our Complaint and Amended Complaint do not refer to US Realm. You are fully welcome to monitor our case to make sure that we do not seek any assets of US Realm, but I do not know of any authority that allows you to threaten contempt in bankruptcy in order to have us provide you discovery in a state case where your client is not a party. If you have any legal authority for your position, please provide it and I would be happy to review it. Otherwise, Carbon Creek will have to perform its own discovery, through the proper channels and at the appropriate time. Thank you for your attention to this matter. Tom Bullock From: Bradley T. Hunsicker <BHunsicker@markuswilliams.com> Sent: Friday, May 14, 2021 7:25 PM To: Tom Bullock <tbullock@BullockCoffman.com>; Barry Crago <bcrago@johnsoncowy.us> Cc: William Cross <WCross@markuswilliams.com> Subject: RE: US Realm - Johnson County litigation Tom – Given the seriousness of a stay violation, I want to give Johnson County an opportunity to provide further documentation before we proceed with the motion for order to show cause. To that end, I'm looking for concrete information (documentation) identifying what (if any) mineral assets and/or real property interests are owned by Carbon Creek that are subject to the Notice of Tax Lien. As I explained, Johnson County is using the same Notice of Tax Lien to assert a secured claim against both US Realm (though its POC) and Carbon Creek (through the state court litigation). There is no question that US Realm has real property interests (of record) identified in the legal descriptions in the Notice of Tax Lien. For this reason, it follows that Johnson County is seeking to foreclose on real property interests owned by US Realm in the state court litigation against CCE, which is stayed by operation of 11 U.S.C. 362(a). However, if it is Johnson County's position that it does not intend to foreclose on any of US Realm's mineral assets and/or real property interests in the state litigation, can you identify, with specificity, what mineral assets and/or real property interests are owned by Carbon Creek that Johnson County intends to enforce its alleged lien on? I'm looking for conveyance documents to show what mineral assets and/or real property interests Carbon Creek owns that are subject to the Notice of Tax Lien (deeds, leases, etc.). I raise this question because I am not aware of any mineral assets and/or real property interests that are owned by Carbon Creek and that would otherwise be subject to the Notice of Tax Lien. For that matter, in the state court litigation, Carbon Creek has maintained it does not own any such interests, or any of the property interests identified in the Notice of Tax Lien. I believe US Realm's court-appointed CRO has confirmed this fact. Along those same lines, can you provide me with whatever document was referenced to create the chart containing the legal descriptions in the Notice of Tax Lien (I'm referring to the chart in paragraph 4)? Was this created from an internal database? Conveyance documents (of public record) to Carbon Creek? I'm not trying to be difficult, but without providing such documentation I must assume it does not exist, and that Johnson County is not being forthcoming about its true intentions. Please provide the requested information prior to mid-next week. Thanks. Brad From: Tom Bullock <tbullock@BullockCoffman.com> Sent: Thursday, May 13, 2021 8:27 AM To: Bradley T. Hunsicker <BHunsicker@markuswilliams.com>; Barry Crago <bcrago@johnsoncowy.us> Cc: William Cross <WCross@markuswilliams.com> Subject: RE: US Realm - Johnson County litigation Brad, Exactly what interests of US Realm are we alleged to be pursuing? https://outlook.office.com/mail/id/AAQkAGRjOTY2YTRjLTljMDUtNGU2MS04MGVjLWM0ZmIyMTU2OWI1NQAQAOOKG5dg6kX6tO2lTcp0wIg%3D 1/3 6/7/2021 Case 19-20699 Doc 616-4 Filed 06/07/21 Mail - TomEntered 06/07/21 11:35:06 Bullock - Outlook Desc Exhibit Exhibit D Page 3 of 4 Tom From: Bradley T. Hunsicker <BHunsicker@markuswilliams.com> Sent: Thursday, May 13, 2021 10:22 AM To: Tom Bullock <tbullock@BullockCoffman.com>; Barry Crago <bcrago@johnsoncowy.us> Cc: William Cross <WCross@markuswilliams.com> Subject: RE: US Realm - Johnson County litigation Tom – Thank you for the email. Unfortunately, this does not clear up the confusion. It is abundantly clear that Johnson County is pursuing interests owned by US Realm. I will treat your email as a refusal to standdown and will proceed accordingly in the Bankruptcy Court. Thank you. Brad From: Tom Bullock <tbullock@BullockCoffman.com> Sent: Thursday, May 13, 2021 7:49 AM To: Bradley T. Hunsicker <BHunsicker@markuswilliams.com>; Barry Crago <bcrago@johnsoncowy.us> Cc: William Cross <WCross@markuswilliams.com> Subject: RE: US Realm - Johnson County litigation Brad, Thank you for your email. We have no intention of making any claim to property owned by US Realm while it is in bankruptcy and the John Does referenced in the Complaint do not refer to US Realm. Our claims are against Carbon Creek and anyone who may have received proceeds. To the extent you are telling me that US Realm did receive proceeds from Carbon Creek, I agree that is not part of our claims or lawsuit while US Realm is in bankruptcy. Please let me know if this sufficiently clears up any confusion. Thank you. Tom Bullock From: Bradley T. Hunsicker <BHunsicker@markuswilliams.com> Sent: Tuesday, May 11, 2021 5:08 PM To: Tom Bullock <tbullock@BullockCoffman.com>; Barry Crago <bcrago@johnsoncowy.us> Cc: William Cross <WCross@markuswilliams.com> Subject: US Realm - Johnson County litigation Tom/Barry – As you know, I represent US Realm Powder River, LLC ("US Realm") in its chapter 11 bankruptcy case. I've spent a considerable amount of time reviewing Johnson County's proof of claim (the "POC") and the Complaint for Foreclosure on Tax Lien on Mineral Production (the "Complaint") that Johnson County has filed against Carbon Creek Energy ("CCE") (US Realm's operator, as you know) and "John Doe(s)". The Complaint is currently pending as Johnson County, Wyoming Treasurer vs. Carbon Creek Energy, LLC and John Does, State of Wyoming, 4th Judicial District, County of Johnson, Docket No. CV 2020-0093 (hereinafter "Litigation"). I've also spent a considerable amount of time discussing the Litigation with my client, and counsel for CCE. The POC asserts a secured claim against US Realm's real property pursuant to a Notice of Tax Lien on Mineral Production (the "Lien Notice"). The Lien Notice identifies CCE as the delinquent taxpayer and the person against whose property the lien is filed, which creates lien perfection issues that will be addressed in due course through the bankruptcy case – this email is not intended to discuss that point. More important, the Lien Notice references legal descriptions of the "premises from which the minerals were produced", and all referenced property relates to mineral leasehold and well interests owned by US Realm, not CCE. I point this out because it demonstrates that Johnson County acknowledges that US Realm is the owner of the mineral leasehold interests affected by the Lien Notice. Stated otherwise, through its POC, Johnson County acknowledged that the mineral leasehold and well interests described in the Lien Notice are property of US Realm's bankruptcy estate pursuant to 11 U.S.C. 541. Even though Johnson County is fully aware that US Realm is the legal owner of the mineral leasehold and well interests listed in the Lien Notice, its Complaint seeks to foreclose on those interests. Without question, the Complaint violates the automatic stay imposed upon the filing of US Realm's bankruptcy because pursuing the Complaint is "any act to. . . enforce any lien against property of the estate" (11 U.S.C. 362(a)(4)). It is irrelevant that US Realm is not a directly named defendant in the Complaint – US Realm's property is the subject of the Complaint and any action against property of the estate is prohibited under the Bankruptcy Code. And more, US Realm is indirectly named a defendant as a "John Doe" – an "individual who. . . directly received proceeds of the sales" – implicating 11 U.S.C. 362(a)(1), (a)(6). While I was initially hopeful that Johnson County would have heeded the warnings of our prior communications, and communications and filings made by CCE's counsel in the Litigation as it relates to the matters contained herein, it is now apparent that additional measures need to be taken to address Johnson County's complete disregard of US Realm's bankruptcy and its continued violation of the automatic stay imposed pursuant to 11 U.S.C. 362(a). https://outlook.office.com/mail/id/AAQkAGRjOTY2YTRjLTljMDUtNGU2MS04MGVjLWM0ZmIyMTU2OWI1NQAQAOOKG5dg6kX6tO2lTcp0wIg%3D 2/3 6/7/2021 Case 19-20699 Doc 616-4 Filed 06/07/21 Mail - TomEntered 06/07/21 11:35:06 Bullock - Outlook Desc Exhibit Exhibit D Page 4 of 4 Please confirm prior to COB on Friday, May 14, that Johnson County will recognize US Realm's bankruptcy case and the automatic stay by immediately ceasing prosecution of the Complaint to foreclose on property of US Realm's bankruptcy estate. This will require Johnson County to notify the District Court that the Litigation must be stayed, if not otherwise dismissed. If Johnson County refuses to comply, I fully intend to file a motion for order to show cause against Carla Bishop, the Johnson County Treasurer (I would refer you to the Bankruptcy Code's abrogation of sovereign immunity as to a governmental unit under 11 U.S.C. 106(a)). Please understand that this email is intended to resolve the matter amicably. I am extending a courtesy. Thank you for your timely cooperation. Brad Bradley T. Hunsicker Markus Williams Young & Hunsicker LLC 2120 Carey Avenue, Suite 101 Cheyenne, WY 82001 Phone: 307-778-8178 Cell: 307-214-4973 www.markuswilliams.com Download vCard ________________________________________________________________ CONFIDENTIAL ATTORNEY-CLIENT OR OTHERWISE PRIVILEGED COMMUNICATION DO NOT FORWARD WITHOUT PERMISSION CONFIDENTIAL COMMUNICATION E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error, please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. https://outlook.office.com/mail/id/AAQkAGRjOTY2YTRjLTljMDUtNGU2MS04MGVjLWM0ZmIyMTU2OWI1NQAQAOOKG5dg6kX6tO2lTcp0wIg%3D 3/3