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<br />FRDN : SAN I'1 I G?!EL BASIN F OP,UN NELJS <br />FA ; NO. : 970 864 7850 <br />CARVER SCHWARZ MCNAi3 lk BARLEY, L{LC <br />Oct. 06 2010 03:45Pri P3 <br />\ > ?3 ? (-)V <br /> <br />HUDSON'S BAY CENTRE <br />1600 STOUT STREET, SUITE 1700 <br />DENVER. COLORADO E30202. <br />MAINLINE: 303.893, <br />FACSIMILE: 303-893,1829 <br />September 22, 2010 <br />Mr. and Mrs. Frank Morgan <br />P. O. Box 4 <br />Nucla, CO 81424- <br />Re: Coal Mining Lease dated SMtember 10, 1998 pertaining to Section 1, T46N, <br />R16W, N.M.P.M. (the "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 minimum, <br />delayed approval of PR-06 by several months and have imperiled the livelihood and jobs of <br />everyone employed by WFC, its contractors, and everyone employed by the Tri-State Power <br />Plant. <br />The relevant provision of the Tease is as follows: <br />Lessor agrees to refrain from interfering with, &laying or obstructing Lessee's <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 />correspondence is enclosed. <br />C:HRIS"1'or HER M. KAMPEN <br />CKAMPFR?CKSMB.COM <br />H <br />i, <br />7 / <br />If you wish to resolve this dispute, 1 would suggest we discuss your withdrawing your opposition <br />to PR-06, including your agreement not to appeal any decision by DRMS. 1 have not received