PERMFILE61853

• Permit No: C1984067
• IBM Index Class Name: Permit File
• Doc Date: 12/11/2001
• Section_Exhibit Name: EXHIBIT 1 DEEDS AND LEASES
• Media Type: D
• Archive: No

• - 3 -
Arness-IlcGri`f:n Coal Comoan}' .dove^~er S, 1976
ur.derlyino said prooert}~, one-half to Isna•r and
one-halt to Durango Clest, Ltd. (:vhich is t:ie pro-
nortior. in :which they own minerals en the adjoin_-
inc prc?erty to this described property);
C. Have inercy Ca?ita1, Ltd. ccmmence a cuiet
title action saeking to quiet title to minerals
ander this pro?erty.
Since you desire the _ights to the coal under this prop?rt~/,
we r;ould recuire the title curative c•ror'.; set forth as B or
C.
3. There is a title problem with regard to the :: F.i
SE ;, Section 21, To:•mship 35 :worth, Range 10 West N.Id.P.?!.
C2iester J. ?etty and J. F. Ridenour too}: title to this pro-
perty on January 9, 1942 by deed recorded in Book 240, Page
50 of the records of LaPlata County, Colorado. Oz February 2?,
1942, by a deed recorded in Book 244, Page 214 of the records
of LaPlata County, Colorado (referred to herein as the "First
Deed"), i•:essrs. Petty and Ridenour conveyed the follo:•rinc, de-
scribed l~ro~erty to L. D. Aurnett and ~Iilliam Girard: ".?orth
half Of the I~Ort}least c_uarter (:d'-,SF.;)." This deed was recorded
on December 15, 1942. Folloc•ring this conveyance, b!essrs. Petty
and Ridenour, by deed dated I•Iarch 27, 1942, recorded in Boo}:
244, Page 211 of the records of La?lata bounty, Colorado (re-
ferred to herein as the "Second Deed") conveyed to L. J. Po::ell
the following described property: "East Half of the Sout!-;east
nuarter (E?;SEy)." ':his deed aras recorded Cecember 8, 1942.
`!ou will see that these deeds overlap orith regard to the Id F';
SEy. L. J. Powell is the person by whcr.. Enerav Capital, Ltd.
claims title. L. D. Burnett and S•dilliam ,irard are not in
the chain of title of Energy Capital, Ltd. The Second Deed
will give superior title to the .tE=;5~'; of such Section 21 be-
cause it c•~as recorded first, ever hough i*_ eras dated later
than the First De=_d cnly if L. J. ?Dwell took this deed rithout
notice o= the pr?or conveyance. Eastorood v. Shed', 1G6 Colo.
136, 442 P.2d 423 (1963); C.R.S. (1973, as amende_~) 33-35-109.
The cuestion of actual or constructive notice b}r L. J. ?o~:re'_1
of the First Deed cannot be determined by an e:;_:~ination of the
abstract o° title.
It is to be noted that the First Deed contains a dis-
crepancy in t.`.e d=scription, :rhich would give so^.e indication
that a ty?ocra^ical error was made. tie have search_d, but do