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Lance Wade <br />Mine Manager <br />Western Fuels-Colorado, New Horizon Mine <br />P.O. Box 628 <br />Nucla, Colorado 81424 <br />September 7, 2008 <br />Dear Lance, <br />In your letter, you stated that if had any questions or concerns to feel free to discuss those <br />with you. Is there a chance that you could meet with us and discuss some of those concerns and <br />maybe some options? <br />Western Fuels has been taking approximately 100-200 feet per year and doing their lifts. This <br />has worked out very well for both Western Fuels and us. Sunshines' Corner was agreed upon in <br />1998. We have not gotten any of that property back nor in production. We were suppose to be <br />able to put it back just like Burbridges, Garveys, Bensons, Staats , San Miguel Power, Goforths, <br />etc. and getting the production off of it to sustain any future losses of production with the on <br />going mining on the property North of our house. We get approximately 300 1-ton bales off of <br />this field which you want to take possession of. This is a tremendous loss for us besides not <br />being mined for years. We would like for you to please continue with your small lifts and we <br />will certainly give up the acreage as you need it to mine but we do not wish to turn over the entire <br />field nor see any reason for it at this time. Please meet with us so we can work this out. <br />Thank you, <br /> <br />Frank Morgan <br />,,? <br />Mike Morwg -? v c`ti? C?-