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below. The letter of November 12, 2010 from Holme Roberts & Owen LLP is referred to below as <br />the "HRO letter". <br />Dividing the property into 35-acre tracts. Oakridge divided the mine permit area into nine <br />tracts of 35 acres or more. This area includes the SL-04 bond release area. The tracts are <br />shown on a map that was recorded in the records of the La Plata County Clerk and Recorder <br />in early 2009. La Plata County Tax Assessor Records show the tracts comprise 13 individual <br />tax parcels. Paragraph A(i) of the HRO letter characterizes the nine tracts and surrounding <br />35-acre tracts as a "subdivision", as follows: "Pursuant to state law, Oakridge has <br />established a 35 acre parcel subdivision on its 1898 acre parcel, including the permit lands." <br />2. Execution of a letter of intent with La Plata County for roads that will cross the bond release <br />area. Oakridge executed a letter of intent with La Plata County, dated January 25, 2010, in <br />which the two parties generally agree to execute a formal agreement that provides for <br />Oakridge dedicating permanent easement rights-of-way to the County for possible future <br />County roads that may cross the bond release area. Paragraph A(i) of the HRO letter says: <br />"Oakridge has planned for infrastructure development and access to the subdivision property, <br />as evidenced by a Letter of Intent entered into with La Plata County, dated January 25, 2010, <br />providing for the construction of connector roads from state highways into the Oakridge <br />property." <br />3. Construction of recreation trails and their dedication to La Plata County. Oakridge Energy <br />dedicated approximately 12 miles of hiking, biking, and equestrian trails to La Plata County. <br />A segment of one of those trails (approximately one mile long) crosses the mine permit area, <br />in the eastern undisturbed portion of the area. Paragraph A(i) of the HRO letter says: <br />"Oakridge has further readied the permit lands for residential land use by building and formal <br />dedication to La Plata County of recreation trails across the subdivision property." <br />4. Expenditures on engineering, surveyingand legal services. Paragraph A(i) of the HRO letter <br />says: "Oakridge spent approximately $110,000 on the development of the subdivision, <br />including approximately $95,000 in engineering and surveying fees, and approximately <br />$14,000 in legal fees." <br />5. Option to purchase. Paragraph A(iii) of the HRO letter says: "As further evidence of <br />development of the post mining land use, on April 4, 2006, Oakridge entered into a Contract <br />to Buy and Sell Real Estate with a real estate developer that provided for an option to <br />purchase the approximately 1900 acre parcel for a price of $40,000,000. The option was not <br />exercised, but its existence, and the real estate developer's interest in the property, is credible <br />evidence that the post mining land use has been achieved." <br />6. Achievement of commercial and industrial for areas transferred to adjacent sand and gavel <br />permit. Over the years, parts of the coal permit area where sand and gravel were once mined <br />were transferred to the immediately adjoining Ewing Mesa Pit #1 sand and gravel operation <br />(DRMS Permit No. M-1992-116). In referring to these transferred areas, Section B of the <br />HRO letter, says: "The transfer of the sand and gravel operation to a separate permit from the <br />10