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.ys ?? eurur? <br />010190 <br />August 5, 2010 <br />Western Fuels-Colorado Mr. and Mrs. Frank Morgan <br />P.O. Box 628 P.O. Box 4 <br />Nucla, Colorado 81424 Nucla, CO 81424 <br />Telephone 970/864-2165 Re: Reclamation of Morgan Property <br />Fax 970/864-2168 <br />Mike Morgan and JoEllen Turner <br />P.O. Box 346 <br />Nucla. CO 81424 <br />Mr. and Mrs. Frank Morgan, Mike Morgan and JoEllen Turner: <br />Western Fuels is providing this correspondence in the hope of finally resolving the <br />disputed issues that remain between the company and the Morgan family. While it <br />has been a long road, we feel that we have in some cases reached agreement with <br />you, and in other cases are close to reaching agreement, on the most important <br />issues regarding the protection of your property and the return of the land to its <br />full, prime farmland productivity following the completion of mining activities. <br />First off, we appreciate your willingness to continue to talk through these issues. <br />We also appreciate your willingness to reach agreement with us on the issues <br />where we have been able to reach agreement, for example the letter agreement of <br />April 28, 2010. <br />We also do not mean to give offense by our discussions in our permit submittals of <br />the condition of the Morgan land prior to mining on the property. We have had to <br />rely upon the experience and judgment of our consultants and experts who have <br />given their opinions as to the condition of the property prior to mining. We <br />understand how much the land means to the Morgan family, and in no way mean <br />to disparage you or the work and effort that you have expended in making the <br />Morgan farm the remarkable and productive place that it is. We can assure you we <br />will make every effort during the reclamation process to protect your investment <br />and return the land to its pre-mining, prime farmland condition and productivity. <br />Finally, Western Fuels apologizes to the Morgan family for the adverse <br />consequences you suffered as a result of the deficiencies that came to light in the <br />permit process, and for the length of time and the difficulty you experienced in <br />getting those deficiencies corrected. Western Fuels recognizes that it made errors, <br />and these played a role in creating the defects and the resultant impacts you <br />suffered.