GENERAL49792

• Permit No: C1981044
• IBM Index Class Name: General Documents
• Doc Date: 7/24/2003
• Doc Name: Enclosed Letter & Original Lease RAG
• To: DMG
• Permit Index Doc Type: General Correspondence
• Media Type: D
• Archive: No

i Lee T. Gaskins
Senior Land Administrator
Tele: [phone]
Fax: [phone]
July 11, 2003
©~~
RAG American Coal Holding, Inc.
Ruth R. Barker Bradley R. Barker
Bellewood Retirement Living c/o Edwin S. Barker
3710 Providence Point Drive SE, #1111 4115 East Lake Sammamish Parkway SE
Issaquah, WA 98029 Sammamish, WA 98075
James E. Barker Edwin S. Barker
c/o Edwin S. Barker 4115 East Lake Sammamish Parkway SE
4115 East Lake Sammamish Parkway SE Sammamish, WA 98075
Sammamish, WA 98075
LMS REF. #EMP-001-0312-0000
Harriet E. Clancy Coal Mining Lease dated July 15, 1968
RAG Empire Mine
Moffat County, Colorado
Dear Mrs. Barker and Messrs. Barker:
Reference is made to that certain Coal Mining Lease dated July 15,1968 between Harriet E. Clancy,
now yourselves, Lessors, and Cyprus Empire Corporation, now RAG Empire Corporation, successor
in interest to Sam T. Taylor, Lessee; as amended by Agreement dated April4, 1975 between Harriet
E. Clancy and Empire Energy Corporation; as further amended/clarified by Ratification of Coal
Mining Lease dated August 9, 1977 between Harriet E. Clancy and Empire Energy Corporation (the
"Lease").
Inasmuch as RAG Empire's coal mining operations have been and continue to be suspended due
to adverse market conditions, RAG Empire respectfully proposes to amend the Lease as follows:
Eliminate the present requirement to pay you a backhauling fee of $10,000 per year because
RAG Empire does not plan to transport coal produced from other lands through your property if
and when production resumes; and
2. Reduce the required annual advance minimum royalty of $6,000 per year to $1,000 per year.
In the event you agree to RAG Empire's proposed changes, (1) an amendment to the Lease
incorporating the above mentioned changes will be prepared and sent to you for signature; and (2)
one-quarter (1/4) of the $1,000 rental payment will be sent to each of you. In the event you disagree
with the above proposed changes, please consider this letter as RAG Empire's notice of termination
of the Lease as of 12:00 midnight on July 14, 2003.
Please -
Indicate your decision to accept or decline the above mentioned proposals where indicated
below;
2. Sign and date each copy of this letter where indicated below;
3. Send me a facsimile of the dated and signed letter(s) at [phone]; and
4. Return one (1) counterpart original of the dated and signed letter(s) to me in the self-addressed
and stamped envelope provided for your convenience.
391 Inverness Drive South, Suite 333, Englewood, CO 80112-9804 Phone: [phone] Fax: [phone]