2013-07-03_GENERAL DOCUMENTS - C1981008

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SETTLEMENT AGREEMENT AND MUTUAL RELEASE This Settlement Agreement and Mutual Release ( "Agreement') is entered into by and between Frank Morgan, Mary Lou Morgan, Michael Morgan, and JoEllen Turner(collectively: "Morgans ") and Western Fuels Colorado, A Limited Liability Company ( "WFC) as set forth below. I. RECITALS a. The Morgans are the Plaintiffs and WFC is Defendant in Case Number 10 CV 367, District Court, Montrose County, Colorado. That action has resulted in a judgment in favor of Frank and Mary Lou Morgan which is under appeal to the Colorado Court of Appeals in Case Number 13 CA 724. Collectively these cases will be referred to as the "Civil Action." The Civil Action alleges, inter alia, violations of the Colorado Surface Coal Mining Reclamation Act ( "SCMRA ") and its regulations. b. The Morgans are Plaintiffs and WFC is Defendant along with the Colorado Mined Land Reclamation Board ( "MLRB ") and the Colorado Division of Reclamation, Mining & Safety ( "DRMS ") in a companion proceeding, Case Number 10 CV 548, District Court, Montrose County, Colorado. This case will be referred to as "10 CV 548." C. The Morgans, WFC, and DRMS are parties to various administrative objections pertaining to a surface coal mining permit issued by DRMS to WFC and known as C1981 -008 ("Mining Permit'). Collectively these objections will be referred to as the "Permit Objections." d. The Morgans, WFC, and DRMS are parties to one or more administrative objections pertaining to permit C1981 -008 which may be pending before the federal Office of Surface Mining ( "OSM "). Collectively these objections will be referred to as the "OSM Objections." e. Frank Morgan and Mary Lou Morgan, as Lessor, have granted to WFC, as Lessee, a Surface Coal Mining Lease, with amendments, a true and correct copy of which is attached as Exhibit 1, and which will be referred to as the "Coal Lease." The lands described in the Coal Lease are referred to as the "Morgan Property." f. Mining pursuant to the Coal Lease is complete on the Morgan Property, and the activities by WFC on the Morgan Property are confined to reclamation, which is expected to continue for ten years from the date of initial permanent seeding of the Morgan Property. g. It is the intention of the Morgans and WFC to fully and finally resolve all remaining disputes between them, and to arrive at a binding and enforceable agreement which will result in the dismissal, with prejudice, of the Civil Action, 10 CV 548; the withdrawal of the Permit Objections and the OSM Objections; and the reclamation of the (00158657.2 )