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SETTLEMENT AGREEMENT This settlement agreement is entered into this day of 1992 by the Colorado Division of Minerals and Geology ("DMG"), formerly the Mined Land Reclamation Division, and the First National Bank of Florence ("the Bank"). RECITALS 1. The DMG is an agency of the State of Colorado created pursuant to § 34-32-105(1), C.R.S. (1991 Supp.) and charged with the administration of the Colorado Surface Coal Mining Reclamation Act ("SCMRA") §§ 34-33-101 to 137, C.R.S. (1984 & 1991 Supp.) 2. In 1987 the Colorado Mined Land Reclamation Board ("NLRB") issued a permit to the La Plata Coal Corporation ("the coal company") to operate a coal mine in La Plata County. Pur- suant to §34-33-113, C.R.S. (1984), the coal company provided the DMG with a letter of credit issued by the Bank to be held as a reclamation bond. 3. On May 1, 1989, the NLRB revoked the coal company's permit and ordered the reclamatio,-;.bond to be automatically for- feited on July 1, 1989. 4. On February 22, 1990, the DMG and the Bank entered into a Letter of Agreement whereby the DMG permitted the Bank an opportunity to reclaim the site in lieu of providing the DMG with the proceeds of the letter of credit. 5. Section II.A. of the Letter of Agreement specifically provides for the demolition and removal of surface facilities, structures and equipment by June 1990. 6. The site includes a conveyor used by the Coal Company to convey coal. The conveyor has not been removed as required by the Letter of Agreement, the permit and the SCMRA. The site can- not be finally reclaimed until the conveyor is removed. 7. Dugan Production Company ("DPC") claims ownership of the conveyor, having purchased same at a sheriff's sale. 8. The DMG has filed an action in District Court for the County of La Plata, naming DPC, the landowner Carl Strohecker, and the Bank as defendants, requesting that the Court enter a de- claratory order and injunction as necessary to allow the DMG to