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1999. This complaint letter also attempted to characterize the entirety of PR -06, just approved <br />by the Board, as a violation of the Colorado Coal Program. <br />74. On February 3, 2010, the Division sent a letter to OSM stating that the Fourth <br />Citizen Complaint was unfounded, finding no basis for each of the 13 alleged violations of the <br />Colorado Coal Program. <br />75. Counterclaim Defendants have also attempted to raise objections to WFC's <br />applications pending in Water Court pertaining to water rights and an augmentation plan for the <br />Property. <br />76. Counterclaim Defendants' conduct in breach of the Coal Mining Lease has <br />damaged WFC's legal interests and caused WFC to suffer and incur damages including <br />consultant's and attorney's fees, attributed costs of WFC personnel, damage to WFC's <br />relationships with government actors and other landowners, delay of release of WFC's <br />reclamation bond, delay of WFC's Permit approval, and other substantial damages. <br />77. All conditions precedent to the bringing of this action have occurred or been <br />discharged. <br />CAUSES OF ACTION <br />FIRST CLAIM FOR RELIEF — FRIVOLOUS, GROUNDLESS AND VEXATIOUS <br />CLAIMS UNDER CRS 13 -17 -101 ET SEQ. <br />(WFC v. All Counterclaim Defendants) <br />78. WFC incorporates by reference the allegations of paragraphs 1 to 77 of this <br />Counterclaim as if set forth in full herein. <br />79. Counterclaim Defendants' claims herein as brought in the instant litigation are <br />substantially frivolous, groundless, and vexatious within the meaning of CRS 13 -17 -101 et seq. <br />80. Counterclaim Defendants have unnecessarily expanded this proceeding by "other <br />improper conduct" within the meaning of the statute. <br />81. WFC is therefore entitled to its costs and reasonable attorney's fees in an amount <br />to be proven at trial, including all such costs and fees incurred in defending this litigation and in <br />responding to the Second, Third, and Fourth Citizen Complaints. <br />SECOND CLAIM FOR RELIEF — BREACH OF THE COAL MINING LEASE <br />(WFC v. Frank and Mary Lou Morgan) <br />82. WFC incorporates by reference the allegations of paragraphs 1 to 81 of this <br />Counterclaim as if set forth in full herein. <br />83. WFC is in compliance with the Coal Mining Lease in all material respects. <br />(00026036.1) 10 <br />