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Frank and Mary Lou morgan <br />P.O. Box 4 <br />Nucla, Colorado $1424 <br />Lance Wade, Mine Manager <br />Western Fuels-Colorado, L.L.C. <br />P.O, Box 62$ <br />Nucla, Colorado $1424-062$ <br />n <br />"9 <br />DI 1 bLf <br />o 040a <br />Re: Royalty Payments on Coal and default in, lease agreement. <br />Dear Western Fuels: Frank or Mary Lou Morgan did not received their royalty payment <br />as agreed in lease agreement dated September 10x', 1998. Royalty payments must be made by the <br />10'' day of each September of each year. Last year the royalty payment was also late. It is the <br />21' of September and no Royalty payment has been received. This is a default of the lease <br />agreement and we have received no letter from Western Fuels to the contrary. The mine has not <br />been shut down and they have continued removing coal from the Morgan property, and mining <br />witbin the permit area. <br />Thank you for your time, <br />Frank Morgan <br />J'oEllen Turner <br />Michael Morgan <br />.. s-•_