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10/04/2010 08:44 FAX 970 665 2675 VISTA REALTY <br /> <br />CARVRR SCHWARZ MCNAS & DAILEY, LLC <br />HU09OW& BAY CCW14C <br />1600 STOUT STRM7, SUI7e 1700 <br />DENVER. COLORADO 80202 <br />MAIN LINT: 303.893.1615 <br />FACSM ILE: 303.893.1829 <br />April 1, 2010 <br />Mr. and Mrs. Frank Morgan <br />P. O. Box 4 <br />Nucla, CO 81424 <br />Mikc Morgan and JoEllen Turner <br />P.O. Box 346 <br />Nucla, CO 81424 <br />CHRISTOPHER M. KAMPER <br />C:KAMPeR@CKSMe.COM <br />Re; LoggAgmgant d Seg=ber 14. 1998 ggMining to T46N. R16A <br />N.M.P.M. <br />Dear Mr. and Mrs. Frank Morgan, Mike Morgan, and JoEilen Turner. <br />Western Fucls-Colorado LLC ("WFC') is in receipt of your document entitled Intent to File a <br />Civil Suit dated March 10, 2010 and received by us on March 29, 2010. <br />That document threatened WFC with legal action, and WFC has retained this office to represent <br />it concerning such action. Please communicate with WFC only through this office, and please <br />provide contact information for the attorney who will represent you in this threatened litigation. <br />In addition, you are obligated under Article 7(f) of the above-referenced Lease Agreement to <br />"refrain from interfering with, delaying or obstructing Lessee's exercise of any of its Rights <br />herdWder, dr aimilff iriAhts on oftrfands,by any means whatever." Your Intent docuthmt, <br />combined with innumerable prior protests befb= governmental bodies and harassment of WFC <br />employees certainly constitutes such "interference." Therefore, you are in material breach of the <br />Lease Agreement. <br />Consequences of continuing to breach the Lease Agreement can include any of WFC's legal <br />remedies under the agreement, up to and including legal action and/or the suspension of royalty <br />payments to which you would otherwise be entitled. WFC has tried hard to work with you to <br />find a resolution of this dispute, but this effort has been frustrated by your refusal to cooperate <br />with any proposal or to respond with any reasonable proposal of your own. If you continue to <br />harass WFC employees and obstruct WFC's mining and reclamation and activities, WFC may <br />have no choice but to pursue its own remedies in court of law. <br />1a005/007