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MATRIX ENERGY, LLC <br />P.O. Box 271309 <br />Ft. Collins, CO 50527 <br />Phone:970-282-1211 <br />Fax:970-282-1233 <br />January 15, 2004 <br />Varra Companies, Inc. <br />ATTN: Christopher L. Varra <br />8120 Gage Street <br />Fredrick, CO 80516 <br />Deaz Mr. Varra: <br />Matrix Energy, LLC is awaze that extraction activities have ceased near our sole <br />facility located in the South East comer of the existing permit (DMG M-19787-056 - <br />Durham Sand & Gravel Pit). Extraction activities will not resume in the neaz proximity <br />of our facility. Further, the pit wall in neaz proximity to our facility has been backfilled <br />and graded. Continued extraction activity will not occur closer than 10 feet from Matrix <br />Energy, LLC structures or easement. Based upon this information, continued mining and <br />reclamation activities at other locations within the permit area will have no negative <br />effect on our facilities. <br />Y u s tml}; <br />7 <br />Dan L. Schwartz <br />Co-Manager <br />State of Colorado <br />County of Larimer <br />Notary Public <br />The foregoing instrument was acknowledged before me this llv~th day of January, <br />2004. <br />Notary Public ~ ' , , r,;~~CA- <br />My commission expires ~~,3p~c~~ <br />