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III IIIIIIIIIIIIIIII <br />RECEIVED <br />OCT 3? 2000 <br />Division of Minerals 8 Geology <br />via fax and first class mail <br />Fax: 303-832-8106 <br />TO: Mr. David Berry <br />Coal Program Supervisor <br />Division of Minerals and Geology <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />FR: A. L. Perry <br />SU: Frontier Insurance Company Bonds <br />DA: October 27, 2000 <br />A. P. Maxwell <br />Development Co., LLC <br />9203 Petersburg Road <br />Evansville, IN 47725 <br />Voice: 812-867-7727 <br />Fax: 812-867-7705 <br />email: alpeny@alperry.com <br />Internet: alperry.com <br />CC: Bruce Addington, A.P. Maxwell Development <br />Ron Thompson, Consultant to A. P. Maxwell Development <br />Jerry Koblitz, Greystone <br />I am in receipt of your letter dated October 17, 2000. I appreciate your working with us on <br />the issue of replacing bonds. <br />My partner, Bruce Addington, and I hoped to start a new mine, but the market has not been <br />cooperative. We have been working on this project for over 4 years now. We had a <br />company interested in buying our coal mining interests, but they now tell us they are not <br />interested. Therefore, it looks doubtful that we vdill be going forward with the proposed <br />mine. <br />As to replacing the bonds in question, we looked at other bonding companies. The price <br />is about 50% or more costly and they want more security than with the Frontier Bonds. <br />The agent for Frontier told us that Berskshire Hathaway has agreed to underwrite the <br />Frontier Bonds which should greatly improve the rating for the bonds. Please see attached <br />press release from Frontier. We are awaiting further details. Meanwhile we are continuing <br />to pay premiums on the Frontier bonds. <br />Bruce Addington, based on his interests in Kentucky, tells me the state of Kentucky <br />accepts the Frontier bonds on all existing bonds. Ron Thompson and Jerry Koblitz have <br />confirmed this same information in their discussions with the state of Kentucky. <br />D:\Data\102700.wpd <br />