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CARVER SCHWARZ MCNAB & BAILEY, LLC <br />HUDSON'S BAY CENTRE <br />1 600 STOUT STREET. SUITE 1 700 <br />DENVER. COLORADO 80202 <br />MAIN LINE: 303.893.1815 <br />FACSIMILE: 303.893.1829 <br />October 4, 2010 <br />BY HAND DELIVERY (COPY) AND U.S. MAIL (ORIGINAL) <br />Mr. and Mrs. Frank Morgan <br />P. O. Box 4 <br />Nucla, CO 81424 <br />Mike Morgan and JoEllen Turner <br />P.O. Box 346 <br />Nucla, CO 81424 <br />CHRISTOPHER M. KAMPER <br />C KAM PER@CKSM B.C O M <br />Re: Lease Agreement dated September 10, 1998 pertaining to Section 1. T46N. <br />R16W. N.M.P.M. <br />Dear Mr. and Mrs. Frank Morgan, Mike Morgan, and JoEllen Turner: <br />This letter concerns the irrigation activities that are taking place immediately adjacent to the zone <br />of active mining operations, which were observed and photographed on October 4, 2010. <br />This will confirm our agreement today in which Mike Morgan gave me his word that such <br />irrigation would stop as soon as he returned to the Property on the morning of October 5, 2010. <br />The reason is that DRMS has required us to refrain from topsoil removal until irrigation has been <br />stopped and the topsoil is dry. Mike, I greatly appreciate your willingness to resolve this issue <br />with us without the need to go before the Judge in Montrose County District Court. <br />I have spoken to Lance Wade, who will arrange to have Tom Fry deliver to you the written <br />notice that you requested concerning these irrigation activities and removal of the fencing in the <br />area. Lance will coordinate any necessary further arrangements and details with you. As I stated <br />to you on the telephone, if you wish to remove any hay crop from the area, you may do so as <br />long as it is done before October 18, 2010. <br />Finally, I would like to say to Mike and JoEllen that I greatly appreciated your courtesy to me on <br />the telephone today. Thank you again for your cooperation.