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05/10/2001 12:12 FAS DORSEY' & WHITNEI <br />DOASEY & WHITNEY LLP <br />Mr_ Bobby Hill, Mm~aging Partner <br />Mr. Dickie .Hill <br />Mcy 10, 2001 <br />Pave 3 <br />9. Governing Law. 'Ihe letter shall be governed by and consWed in accordance <br />With the internal laws of Ure State of Colorado without gjving effect to the conflict of laws <br />provisions rlrcrcof. <br />f~jooa <br />l6_ Reeowse. if a definitive agrcctnent is aot negotiared and executed, neither parry <br />mill have rtteoutse against the other in ]aw or equity, including claims based upon failure to <br />negotiate in good faith, except for claim, For breach of the covenants co»tained in paragraphs S, <br />6, 7 and 8 hetr;of_ <br />.... <br />If the foregoing acca~rately reflects the basic terms and conditions we have discussed, <br />please sign one copy of this letter and return it to me by fax as soon as possible. <br />Very truly, <br />Robeit A. Bassett <br />Dorsey & Mtiwcy, LLP <br />Attorneys for Loteacito Coal Cotrtpatty, LI.C <br />HILL RANCH <br />B. F_ Hill, Managing Partner <br />Date' <br />F.E.. HILL CO. <br />F. R HiU <br />Ja,. _ <br />Date: _ <br />