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RETURN RECEIPT REQUESTED <br />August 29, 2008 <br />Western Fuels-Colorado <br />P.O. Box 628 Mr. and Mrs. Frank Morgan <br />Nuclo, Colorado 81424 P.O. Box 4 <br />Nucla, CO 81424 <br />Telephone 970/864-2165 <br />Fax 910/864-2168 Dear Mr. and Mrs. Morgan: <br />This is to inform you, that pursuant to Item 3(f) of the Coal Mining Lease, Western <br />Fuels-Colorado, LLC is giving 90 days notice effective September 1, 2008 for you to <br />remove any buildings, structures, irrigation equipment or personal property that you <br />may want from the portion of your property shown in the attached satellite image. <br />Additionally, there will be no irrigation of the designated property portion beginning <br />with the 2009 irrigation season. <br />The exercise of these Section 3(f) rights covers approximately 32 acres located mostly <br />in the E1/2, NW1/4, Sec 1, T.46N., R.16W., N.M.P.M. and is the remainder of the <br />property under lease to Western Fuels-Colorado, LLC. <br />Please contact me at 970-864-2265 if you have any question or concerns. Thank you <br />for your cooperation in this matter <br />Sincerely, <br />--;Zi <br />R. Lance Wade <br />Mine Manager <br />Attachment <br />Xc: Mike Morgan w/attachment <br />FAWpdata\Morgan Property 27AugO8 Dry up letter.doc