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Page 3 <br /> concerning water duality liability. As we discussed in our telephone conversation on May <br /> 19, for the same reasons that your clients want to be able to join the Division as a party, the <br /> Division also must be able to join your clients if suit is brought against DMG by a third <br /> party. Accordingly,I suggest we use the language in paragraph S, as amended, pertaining to <br /> MCR, the Trustee and MidCon's ability to join the Division as a party to reflect the <br /> Division's ability to join these parties to an action brought by a third party. <br /> re- b and 7,VND- R AGREEMENI <br /> Paragraph 11: As we discussed on May 25, we need to find a middle ground regarding <br /> reclamation of MidCon's property. I suggest the following language: <br /> "DMG agrees that it intends to conduct the reclamation activities generally described in <br /> Exhibit within Coal Basin and will use its best efforts to complete such reclamation <br /> activities. (See Steve R.enner's list of the reclamation activities attached to this letter). As <br /> part of this Settlement Agreement,DMG specifically agrees to complete reclamation on the <br /> real estate within Coal Basin currently owned by MidCon so that no additional reclamation <br /> obligation will remain with respect to that property. MidCon agrees not to object to, or in <br /> any way attempt to prevent,reclamation of its property by DMG, of to assert that any <br /> additional reclamation must be performed on its property. DMG agrees that upon completion <br /> of the reclamation of MidCon's property within Coal Basin, it shall execute a document <br /> releasing the property from any further reclamation obligation due to past mining activities in <br /> Coal Basin. Such document shall be recordable in the real property records of Pitkin County, <br /> Colorado. Should DING complete reclamation of Coal Basin for less than the amounts <br /> specified in paragraph 4. above, any remaining funds shall be paid to the Trustee." <br /> This language addresses the concerns of both the Division and MidCon. MidCon will get the <br /> opportunity to review the draft bids and comment on them;DMG will reclaim so that no <br /> continuing reclamation obligation remains; and the Division will execute a release of the <br /> property from further reclamation obligations. At the same time, the language ensures that <br /> the Division has the discretion to implement reclamation without micromanagement of, or <br /> the threat of legal action by, MidCon concerning the Division's work. <br /> 1%9 7 and T <br /> Paragraph 12 should reflect our agreement during the mediation that the Division is not <br /> required to submit a draft of all bids for Coal Basin reclamation to MCR.,but only the second <br /> to the last draft of the bid for reclamation to be performed on MidCon property. Since the <br /> rest of the reclamation is to be done on U.S.Forest Service land,MCR, the Trustee and <br /> MidCon have no say as to this reclamation. Accordingly,the sixth line should read <br /> "reclamation season. The second to the last draft of the bids nertaining..n reclamation work <br /> to be,c.,p shall be made available to MidCon and its <br /> reclamation experts ...." The reference to"MCR" in the last two lines of the paragraph <br /> t70'd o�i:8 66, 8Z 6pW 8SS!2998202:XPA <br />