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07/31/03 THU 12:42 FAx 3167739005 RANEB PIPE LINE C[7J 002 1 . KANEB PIPE LINE OPERATING PARTNERSHIP, L. P. July 31, 2003 Mr. Tom Schreiner State of Colorado Division of Minerals & Geology 1313 Sherman Street, Room 215 Denver, Co 80203 RECEIVED JUL 31 2003 Division of Minerals & Geology RE: Proposed Mining Application Coulson Excavating Company, Inc. of the Stroh Pit SW/4 of Section 14 & NW/4 of Section 23, TSN, R68W, Lorimer County, Colorado Dear Tom: I am writing in response to our telephone conversation regarding the above referenced project. As we discussed, I went back to my project file to research any history on this mining application. The following is an outline of all activity regazding this matter that Kaneb has been involved in: • 11/16/46 Kaneb original easement (Blanket easement) • 1/26/01 Kaneb receives letter from Lorimer County Planning Department regazding proposed mining activity by Coulson. • 1/30/01 Kaneb issued response letter (by Dianne Davis) to Lorimer County Planning Department with list of conditions for operating around Kaneb's high- pressure petroleum pipeline. CC: was made to Richard Coulson. • 8/28/02 Kaneb receives letter of "Public Nofice" meeting from Division of Minerals 7 Geology indicating public meeting on 10/04/02. • 9/03/02 Kaneb issued response letter (by Dale Smith) to Division of Minerals & Geology requesting the Coulson application not be approved until an agreement can be reached by Coulson and Kaneb regazding safety & operations of the mining operations and Kaneb pipeline facilities. ACC: was also sent to Coulson Excavating. • 07/30/03 received telephone call from Tom Schreiner of Division of Minerals & Geology to discuss application and if Coulson has contacted us regazding working on an agreement. In addition to this information, Dianne Davis has made numerous attempts to contact Mr. Richard Coulson to discuss the R/W release and conditions. She always had to leave a message and never received a call back. To date, Kaneb has had no direct contact with Coulson, despite our attempts. No attempt has been made on by, or on behalf of Coulson, to discuss any of the conditions, or their wanting to negotiate the conditions. If Coulson 7340 Wut 21st St. N., Suite 200 Wichita, Kasssas 67205 phone 316.773.9000 Fax 316.773.9001