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to couper:uc tatth the C'umpany. at the Comp;uty's sole exlnnsc. to <br />apply li.r ,end obtain ionmg or other govemmemal land use <br />classlflcauons. pemuts.:rpprovals. Incenses. anJ rights thereinafter <br />"authority"1 that are rcason:nbly rcyuired nn ccmnc~cNOn with the <br />oprrauons that are contemplatcJ wider thus Lease .. . <br />InsicaJ of wmplynng with this contractual obligauun. on J;utt[ar}• ? 1. ?U115, you sent a <br />Icuer to the Colorado Drvuri,n ul \Gnerds and Geology asserting that "L:Ilargl' 1Vest. Inc.. has <br />nu legal right to cmcr this prolxny and no opcrauunal agreement to mute the prulnrty." l-his <br />statement Jnsavuwu,g the Lrtsc h a clear breach of your nhheuhuns under the Lease and. <br />separucly. m uw y1cw, ctmsNtutes tomous slander of Lafarge's title ro sand and gravel under the <br />La:ase. ~Chts un,lusufied course of action by you has caused anJ w ell ;;ununue to cause L.rlarge <br />substanu:d damage and Intel} to the extent Lafarge is delayed ur presented from henne able U, <br />obtain rti D>it_i permu and commence mmine ulxrauons on the Ri,urt><nd Operation. In <br />addition. you itaye been untustly enrirhm~ ~itursehes by ronunwng to utcept Lafarge's tnunthly <br />Lease payments while :d the same ume denying the eflecuvencss of the Lease ;md Irvine to <br />prcyrnt pernutttng and mrmng. ` <br />yaoreuver, you have now appamntly enlisted 'vlr. Stcec I_angz of Lane Realty. Inc.. to <br />tinrthcr aoud Lafaroc's title by puhitshing similar false st:uamcnts in a lisune flyer ur sheet fur <br />ti;11C ui the property. which he ant to Latar~~c. <br />l'ndcr Secuun 7.F.. oC the I_casc, one of the remedrcs f~1r your acUUns pmcluding I_:rfarge <br />from being able to perform rmnlne or prcxessing operrhons pursuant to the Lc;t_k is (ur Lafarge <br />to have the advance muumum royalties n paid returned and w terminate the Lease. This letter 1s <br />nut a nonce of ternmsuion. You should understand. however, that return of the payments ns nut <br />the Inm1t of the damages Lafarge heheves 1t ha, suffered. If rcyuireJ rt, enforce us rtehts. <br />Lafatec ~~rll ~c~k all of Ihr datttages to whrrh it is enhiled..md these;uc substanUaL~ln order to <br />mmlmve its damages, Lafarge h:>s ahrady amended 1t. D\IG pernut apphcahon R, remove your <br />property from a lur the ume tieing. Thus 1n nu vvav ut7erts t-afarge's rights ur your ohingauons <br />undcrthe Lease. <br />l'h1s letter constitute. any rcyuired noucc of default. You have ill days to cure your <br />breach undcrthe Lease. E{uwever. Lafarge recognvcs that an oneoing rclauonshlp vvlth you u <br />hkcly uv I>L an unhappy and contentnous one for both purttes. `fhercfi,re, solely t~~ settle and <br />resoh•e thus m;utcr, and vvnhout ,carver at the Ume of any r'nghts .md claims IaLu•ge has. Lafarge <br />pm(xrses the lulloyynng means to totally settle ibis rnattcr.nnd _ao ourscparatr w;1ys; <br />I 1'uu repay to LaGvge ;dl of the advance mmm~wm royalty payments made by <br />L:d:irge under the Opeon and the Lease. Thc;e presently total y' Itl.lll)!1 <br />1 ou execute a DVtCi pare Status Wuhdrawal Perm loopy au:tchedl tieithdrnvin~. <br />your l;uucu ~ ' I. ?1H1? Icitcr to the I)\IG surd withdraw mg your party status m the I)~1G Perrier <br />pnKess. - <br />LAFARGE 4YE5T, INC. <br />101'0 Church Ranch Vv ay 'rVestm~nstor, ~ <br />ONiCp 13u3r 75%~JC00 F3x~ ia0;t1 n5i-0Sr <br />