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1 <br />' COTTONWOOD IAND COMPANY 1475 Pine Grove Roaa, Suire 207 <br />Steamboat Springs, ColoraGO 904678901 <br />' (970)970-9733 <br />Fax (970) 670-9006 <br />' March 19, 1996 <br /> Ms. Barbara L. Pavlik <br /> State of Colorado, Department of Natural Resources <br />1 Division Of Minerals And Geology <br /> 1313 Sherman Street, Room 215 <br />' Denver, Colorado 80203 <br /> RE: Notice of Intent to Explore For Coal No. X-96-219-00 <br />' Dear Ms. Pavlik: <br /> This letter is in regard to the coal and surface ownership of the seven proposed core drilling <br />' locations included in the above referenced NOI. The surface over Sites A-E is owned by the <br /> Cottonwood Land Company. <br /> <br /> <br /> <br />LJ <br /> <br />1 <br />1 <br />t <br />1 <br /> <br />The coal under Sites A-E is private coal owned by approximately l8 different owners, from <br />whom we have either obtained a drill permit, coal lease or mineral deed or are currently in the <br />process of negotiating for such coal rights. Our intent is to obtain l00% control of the coal rights <br />by drill permit, lease or mineral deed prior to commencing our drilling program. However, if we <br />have less than 100% control of the coal rights at the commencement of drilling, we believe that <br />the Cottonwood Land Company as tenant in common would have the right to explore the coal <br />based on Colorado Revised Statute 34-44-103, copy attached. Our interpretation of this State <br />statute was based on an opinion I obtained for our company from Mr. Patrick Barney, an attorney <br />here in Steamboat Springs who is familiar with the mining industry. <br />The surface and coal under the remaining two sites, F and G, is owned by the Shirley M. <br />Ladtkow and The Sharon W. Crotty Trust, with whom we are currently negotiating for a coal <br />lease with surface access. In the event our negotiations have not been completed prior to the <br />commencement of drilling we would not drill on these two sites, which I believe was stipulated <br />in the NOI. <br />If you have any questions regarding the surface or coal ownership involved in our coal <br />exploration program under this NOI please call me at (970) 879-8733. <br />Sincere i~j <br />Thomas B. Petrosky <br />Senior Land Agen[ <br />Attachment <br /> <br />1 <br />