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Mr. Rodney D. Knutson <br />October 2b, 1990 <br />Page 3 <br />You promptly acknowledged receipt of our July 12 letter by your note <br />of July 17. We have not heard from you since that date. <br />In the course of our conversations on October 23, you again raised <br />perceived obstacle considerations previously expressed in your <br />correspondence to us. Among other things, you addressed current <br />permitting, water availabWty and access to the tailing pond. There <br />was some discussion of ownership of tools and equipment in the mill. <br />We informed you of our intention to bring the mill into operation as <br />early as possible. We confirmed our intentions to overcome any <br />obstacles standing in the way, We expressed our intention to deal <br />with all current obstacles and those that may arise in the future. <br />Insofar as any obstacles involve permitting, we expressed our hope we <br />could rely upon your cooperation and assistance in approaching these <br />matters. In fact, it is our hope that we wW have your full cooperation <br />and assistance as we proceed forward to make this idle asset pro- <br />ductive. <br />We acknowledged to you and Mark Steen there were properties on the <br />mill site and in the trailer personal to Mark. We stated we did not <br />wish to have any responsibility for the custody and care of these <br />articles. We asked Mark Steen come to the mill on October 24 and 25 <br />for the purpose of retrieving these articles and removing them from <br />the site so that we would be relieved from any responsibility. <br />This property was understood to be papers, books and records <br />personal to Mark, as well as his personal articles of clothing and other <br />belongings. Not included were items related to construction and <br />operation of the mill, documents relating to mill machinery and <br />equipment as well as tools, equipment and supplies on the mill site. <br />With respect to tools and supplies, we acknowledge Mark's assertion <br />of some proprietary interests exclusive of COM, Inc. We stated we <br />expected these assertions of ownership to be resolved on some future <br />date predicated on consideration and evaluation of any evidence <br />advanced supporting claim to ownership. <br />It is our intention to take a full and complete inventory of everything <br />in the mill by way of machinery, equipment, tools, supplies and <br />materials. We will do this for our own records for the purpose of <br />accounting and commencement of operations. These records will <br />