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10/0412010 08:44 FAX 970 865 2675 <br />C S M B <br />L A W Y E R S <br />HUDSON'S SAY CENTRE <br />1600 STou r STREET, SurrE 1700 <br />DENVER, COLORADO 80202 <br />MAIN UNE: 303.893.1815 <br />FACSIMILE: 303.693.1829 <br />September 22, 2010 <br />Mr.-and M1's. Frank Morgan <br />P. O. Box 4 <br />Nucla, CO 81424 <br /> <br />CHRIS-rOP14ER M. KAMPER <br />CKAMPEROCKSMS.GpM <br />Re: Coal Mining Lease J_ated ftLqMb% 10-29-8 pg3kning to Section 46N <br />916W. N.M.P.M. fthe "Lease <br />Dear Mr. and Mrs. Frank Morgan: <br />Western Fuels Colorado LLC ("WFC') is in receipt of your correspondence today concerning <br />the royalty payment for the year 2010 pursuant to the above-referenced Lease, <br />Your actions in opposing PR-06 are a direct breach of the Lease. They have, At a rninirntitn, <br />delayed approval of PR-06 by several months and have imperiled the livelihood and jobs of <br />eveym employed by WFC, its contractors, and everyone, employed by the Tri-State Power <br />Plant. <br />The relevant provision of the Lease is as follows: <br />Lessor agrees to refrain from interfering with, delaying or obstructing Leweeys <br />exercise of any of its Rights hereunder, or similar rights on other lands by any <br />means whatever. <br />Lease page 8 ¶ 7(f). <br />WFC through this office sent you correspondence on April 1, 2010, advising you that breach of <br />this provision would result in WFC exercising its legal rights under the Lease, including <br />suspension of royalty payments to which you would otherwise be entitled. A copy of that <br />Correapandence is enclosed. <br />VISTA REALTY 1a0031007 <br />CARVER SC14WARZ MCNAD $ BAILICY, ULC <br />If you wish to resolve this dispute, I would suggest we discuss your withdrawing your opposition <br />to Ply-06,, including, your agreement not to appeal any decision by DBMS. I have not received