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Baffle Mountain Cold GREG V. ETTER GENERAL COUNSEL March 24, 1997 Colorado Mined Land Reclamation Board 1313 Sherman Street, Room 215 Denver, Colorado 80203 Re: Battle Mountain Resources Inc. ("BMRI"), San Luis Project, Permit No. M-88-112 Ladies and Gentlemen: This letter is written on behalf of BMRI to address matters regarding the San LuisMine which are scheduled to come before the Board during its March 26-27, 1997 meeting. Specifically, on December 26, 1996 the Division of Minerals and Geology issued a notice of pos ible violation to BMRI and scheduled a hearing for the February Board meeting. The Board Conti ued that matter until the March meeting in an effort to accommodate public participation. In tl~e course of the Board's discussions at its February meeting, the chairperson, Barbara Green, i disclosed prior ex parte contacts with our attorney, Dean Massey, and with Maclovio Martinet of the Costilla County Conservancy District. Ms. Green went on to disclose that she had been) retained by the Conservancy District to assist in the development of land use planning regulations for Costilla County but that she had never represented them with respect to any matter before the Board under the Mined Land Reclamation Act regarding BMRI. Given those considera~ons, Ms. Green believed that her ability to render a fair and impartial decision was not compronu ed. The Board decided to continue the matter until the March meeting, and one member suggest d that BMRI be consulted to "waive" the possible conflict. At the outset, we would like to note that we sincerely appreciate the candiQ and forthright approach taken by Ms. Green in disclosing the ex parte contacts and potential I conflict for the Board's consideration prior to addressing the matter before them. However, 'for the reasons outlined below, BMRI cannot consent to or "waive" the potential conflict c Bated by these circumstances. As you may know, Ms. Green's client, the Costilla County Cons rvancy District, has been a consistent and outspoken opponent of the San Luis Project since its i ception and has been an adverse party to BMRI in Water Court and in the hearings before this ~oazd regarding the original permits for the project. Mr. Martinez, on behalf of the Conservandy, has appeared before this Board as a vocal opponent of the San Luis Project in numerous p oceedings since then. Further, BMRI filed comments and opposed the proposed Costilla ounty land use regulations as they related to mining, on the basis that they were an unnece9sary and illegal 333 CLAY STREET SUITE 4200 HOUSTON, TE%/LS 770024103 013) 653-7214 FA% (7131 6500600 TELEX 793604