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MINNESOTA CANAL & RESERVOIR COMPANY <br />41103 Lamborn Mesa Road <br />Paonia, Colorado 81428 <br />May 31, 2006 <br />Dan Hernandez <br />Division of Minerals & Geology <br />1313 Sherman St. Room 215 <br />Denver, Colorado 80203 <br />Re:. Mountain Coal Company, LLC <br />Dear Mr. Hernandez, <br />RECEIVEI" <br />JUN 0 5 2006 <br />Division ofMinerals 8 Geu;~yy <br />We acknowledge your response to our letter, dated January 30, 2006, regarding our <br />concerns about Mountain Coal Company's plans to commence longwall mining in the <br />area of Monument Dam and Reservoir. We truly appreciate your efforts to keep us <br />apprised of developments in this matter and your willingness to share information with us <br />during this process. <br />At this point, we are continuing to negotiate directly with Mountain Coal in an effort to <br />reach a binding agreement that will hopefully address and resolve our concerns. We will, <br />of course, keep you apprised of our progess in that regard. <br />Sincerely, <br />Willy is er <br />Presi of the Boazd <br />Minnesota Canal & Reservoir Company, Inc. <br />WK/jt <br />