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MGP MINERAL ENTERPRISES LLLP <br />2615 Oak Drive, #8 <br />Lakewood, CO 80215 <br />November 29, 2007 <br />Colorado Division of Reclamation, Mining and Safety <br />Mr. Kent Gofiam <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />RE: Lorencito Coal Company, LLC, Permit C-96-084 <br />Dear Kent: <br />RECE~v~~ <br />p'~C p 31001 <br />pivision of ReGsa etY n, <br />M~ri-n9 and <br />Thank you for taking time to meet this afternoon. It was a pleasure to have a chance to <br />speak personally about the status of the Lorencito tract coal resource development. As <br />we discussed, I wanted to formally transmit two documents pertaining to Lorencito. <br />The first document is a copy of the original Lorencito deed dated December 7, 1973, <br />recorded in Las Animas County, Clerk and Recorder, Book 75, Page 46, transferring <br />ownership from Nora Parsons to MGP Enterprises. This document is important as it <br />details the rights conveyed to MGP by deed, with speck attention to the rights <br />associated with the development of the mineral resources on the property. <br />The second document is a copy of the lease termination between Lorencito Coal <br />Company and MGP Minerals, dated July 5, 2005. As we discussed, since this letter was <br />issued, MGP has had no business agreement with Lorencito Coal Company, or with the <br />New Elk Coal Company. Neither of these firms possesses the right to mine the <br />Lorencito tract. <br />On behalf of MGP, I would appreciate notification once the Lorencito mine permit <br />application submitted by New Elk Coal Company is declined, which I understand is <br />anticipated very shortly after the first of January, 2008. <br />I look forward to meeting you again in the future. <br />Sincerely, <br />MGP Mineral E ~rprises LLLP <br />.r-~-~ r <br />~;~ <br />G r . Meggi n <br />Ge ral Partner <br />encl. <br />