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DORSEY & WHITNEY LLP <br />• Mr. Jerry Koblitz <br />April 3, 1997 <br />Page 2 <br />• <br />The result will be that Trinidad Railway Holding, LLC will cause Trinidad <br />Railway, Inc. to contract with Lorencito Coal Company for all of the rights necessary <br />for Lorencito to use the railroad (which extends from Jensen near Trinidad to the <br />New Elk facility). However, this cannot occur until after the transfer of permit <br />C-81-012 has been approved, and no documents currently exist which are responsive <br />to CDMG's request. <br />The only existing document that shows Lorencito's rights relative to the <br />railroad is the Coal Lease Agreement attached as Exhibit 2 to the permit application. <br />Paragraph l.g grants the right to "construct, use and improve and maintain .. . <br />railroad spurs reasonably required for the transportation of coal." <br />If you have additional questions, or if representatives of CDMG wish to <br />contact me directly, please call me at the number indicated above. <br />Very tr ly, <br />. 1".j~ <br />Robert A. Bassett <br />RAB:sd <br />cc: Management Committee <br />Bill Huber <br />Herrick K. Lidstone <br />• <br />