2008-03-03_GENERAL DOCUMENTS - C1981008

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Frank and Mary Lou Morgan P.O. Box 4 Nucla, Co. 81424 February 20, 2008 To: Lance Wade, Mine Manager Western Fuels-Colorado, LLC P.O. Box 628 Nucla, Co. 81424-0628 ~~~~ 0 3 200a ;c-amation, pw.- NIinK~y ~„~~ Safety This is a formal letter of default by Western Fuels, Lessee. This letter must be certified with a return receipt as stated in contract with Western Fuels, Lessee, and Frank Morgan, Lessor. The items contained in this letter are in default to the best of my knowledge, Frank Morgan. 1. Prior to any work performed on Lessors' property, Lessee shall give Lessor reasonable notice of the work to be performed (including the material specifications related to the work) and the low bid price for similar work paid by Lessee under Farming and Irrigating Contracts in effect at the time (the Low Bid Price). Lessor shall have the option to either perform the specified work at the Low Bid Price or allow Lessor to contract with third parties to have such work performed. a. A fence was put on Lessors' properly with no prior notice before fence was contracted out. The fence was put up by Alpine fencing. When contacting Lance Wade, he said it required special certification. After a lengthy discussion with Alpine fencing, we were told that there was no special certification needed for that fence. Even if there had been, proper notice should have been given and the opportunity to do the fence should have been offered to Lessor. b. The seeding and preparation of the top soil pile has always been a part of the farming contracts. The top soil piles on Lessors' property were prepared and seeded also without any notification given to Lessor.. Lessor should have been notified and given at least the opportunity for discussion or to perform such work. 2. All fences on Lessors' property shall be replaced with sheep tight woven wire or very similar construction with two strands of barbed wire at the top This was not done, and fences were not put back as they were nor were the comers squared back up. 3.. This item is just a possible default. Since many permanent works are being performed, the possibility of this default is currently in existence. There is suppose to be a take-out off the permanent pipe-line at the Sunshine corner with an 8" valve in place. With all the permanent things going in, if this is not readily taken care, this may cause future problems and complications that might be prevented and solved now. 4.The last default is: Any of the topsoil that is on this place is to to remain with this properly.