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iii iiiiuiuiiii iii 999 The Corley Company PM1O~e 6J~ 5050 P O Boa tB21 COLORADO SPRINGS. COLORADO B090t Feb. 28, 1994 ~~(~G:": Mr. harry P. Foutten Division of Minerals F, fe ology 1313 Sherman St. Denver CO 80203 Dear Mr. Rcutter.: ~1AR ~ 2 1994 _' , . . "I Please make certain [hat there is no confusion regarding ?'he Corley Compary's position regarding the West Pi[ agreement. We have always contended that the Division was not going to be able to fulfill its ohJ.igations under the original agreement. The Division has defaulted er is in error of the following provisions of the Apr. 19, 1993, agree.me.r.t: paragraph 4 and paragraph 8. In addition, your Feb. ]0, 1994, letter stating that $18,500 would be spent on the proposed ditch would constitute a default under paragraph 10. A review of paragraph 7c would show that reclamation other than just a diversion system was included i.n the agreement; $4000 of the $18,500 has already been spent. Your Feb. 25, 1994, letter did not mention that cu::cern. Our position should be unmistakable. I:'e believe that the Division will be in default of the original agreement unless it funds the project with its own funds for completion. Your proposed revision agreement does no[ eliminate the Division's previnns error of paragraph 4. Paragraph 7c does not fulfill the complete reclamatior. requirement for the West Pit, and it would allow the Divisier. to use total $18,500, ignoring the fact that $4000 of the total has been spr_nt. Paragraph 76 specifies a certain design, but remaining money cannot construct that design. f,'hy de you want the latest agreement signed even though it is impossible to complete? The road into the Nest Pit was e]~r:inated by the Division at some time after Feb. 19 and prior to Feb. 26, 1994. It is very interesting that the Division would now place a time constraint on us of Mar. 4, i994, recognizing that the Division is the party to the eri.ginal agreement that is going to be in default. Rather than trying to shift the blame For the delays on us, please reeee:ber that we ha,;e a]c:avs been the party that took tha initiative for all three of the reclamation plans. Instead of Pxaggerating your phone calls when I was not avciiable en Feb. 23 and 24, 1994, into a "week", plea::e remember that I tried to see vrni nn Feb. 25, 1994, when I visited your office. /Si/n/cerely, (/~/ ld.D. Corley, President