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~' ^III IIIIIIIIIIIII III • <br />COTTONWOOD LAND COMPANY <br />Mazch 19, 1996 <br />p~r~l~lt=n <br />MAR 20 1996 <br />~"'"t~76 Pine Grove Roatl. Sure 207 <br />' Steamboat Springs. Colorado BOd87--8801 <br />(970(8708733 <br />Fax (970) WO-9006 <br />State of Colorado, Department of Natural Resources Dlv(Sipn of I`t•tRet`15 ~ ~,cu o9Y <br />Division Of Minerals And Geology <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />RE: Notice of Intent to Explore For Coal No. X-96-219-00 <br />Dear Ms. Pavlik: <br />This letter is in regard to the coal and surface ownership of the seven proposed core drilling <br />locations included in the above referenced NOI. The surface over Sites A-E is owned by the <br />Cottonwood Land Company. <br />The coal under Sites A-E is private coal owned by approximately 18 different owners, from <br />whom we have either obtained a drill permit, coal lease or mineral deed or are currently in the <br />process of negotiating for such coal rights. Our intent is to obtain 100% control of the coal rights <br />by drill permit, lease or mineral deed prior to commencing our drilling program. However, if we <br />have less than 100% control of the coal rights at the commencement of drilling, we believe that <br />the Cottonwood Land Company as tenant in common would have the right to explore the coal <br />based on Colorado Revised Statute 34-44-103, copy attached. Our interpretation of this State <br />statute was based on an opinion [obtained for our company from Mr. Patrick Barney, an attorney <br />here in Steamboat Springs who is familiar with the mining industry. <br />The surface and coal under the remaining two sites, F and G, is owned by the Shirley M. <br />Ladtkow and The Sharon W. Cratty Trust, with whom we are cutrently negotiating for a coal <br />lease with surface access. In the event our negotiations have not been completed prior to the <br />commencement of drilling we would not drill on these two sites, which I believe was stipulated <br />in the NOI. <br />If you have any questions regarding the surface or coal ownership involved in our coal <br />exploration program under this NOI please call me at (970) 879-8733. <br />Sincere ig <br />Thomas B. Petrosky <br />Senior Land Agent <br /> <br />Attachment <br />