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Bill E. Miller, Project Manager <br />Remedium Group, Inc. <br />A Subsidiary o/ W. R. Grace 8 Co. <br />Remedium <br />Sent Via Airborne <br />September 19, 2002 <br />Mr. John C. Weinman, Project Manager <br />Montgomery Watson <br />1475 Pine Grove Road #109 <br />Steamboat Springs, CO 80477 <br />Re: Hayden-Gulch Mine <br />Dear John: <br />This is in response to your letter of September 9, 2002: <br />6401 Poplar Ave., Suite 301 <br />Memphis, iN 381 19 <br />iel: (901) 820-2028 <br />Fax: (901) 820-2061 <br />The CDMG permit documents and permit transfer form have been <br />executed by W. R. Grace ~ Co. ("Grace") and returned to you. <br />2. Title transfer from Grace to Peabody. <br />According to the "Agreement for Sale of Real Property," dated August 2, 1995, and First <br />Amendment to Agreement for Sale of Real Property, dated September 18, 1995, (both <br />attached), Grace was to retain title to the H-G Mine parcel (approximately 1,280 acres) <br />until the reclamation obligations were completed and released by CDMG (see First <br />Amendment, page 3). <br />Peabody recently approached Grace about the possibility of expediting title release for <br />the H-G parcel. Grace agreed to release title to Peabody provided that <br />1. the reclamation permit was transferred to Peabody, and <br />2. the required reclamation bond would be posted by Peabody. <br />Grace is prepared to execute the title transfer upon notification that the Reclamation <br />Permit has been transferred to Peabody. <br />Hopefully, this letter addresses the questions and concerns of your letter. <br />Very truly yours, <br />B E Mi~/`~~`' <br />jm <br />Attach. <br />