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MIDCON REALTY LLC <br /> P.O. Box 2115 <br /> PHONE 1001 Grand Avenue, Suite 106 FAX <br /> (970) 945-7148 Glenwood Springs, Colorado 81602 (970) 945-2303 <br /> May 23, 2003 <br /> Steve Renner <br /> Division of Minerals and Geology <br /> 101 South 3rd <br /> Suite 301 <br /> Grand Junction, CO 81501 <br /> RE: SETTLEMENT AGREEMENT - LOADOUT SITE <br /> Dear Steve: <br /> I've consulted the Settlement Agreement of June 18, 1999 to see what it <br /> provided as to reclamation of the loadout site and find it says, at Paragraph 18, <br /> pages 9-10: <br /> 18. "DMG has recently inspected the Coal Loadout facility in <br /> Carbondale, Garfield County, Colorado, now owned by MidCon <br /> (which is described in Exhibit G, attached) and which is also <br /> subject to DMG reclamation requirements. DMG agrees that if MidCon <br /> completes the following reclamation work to DMG's satisfaction, DMG will <br /> execute a document releasing MidCon, its heirs, successors and assigns <br /> from any further reclamation requirements at the Coal Loadout: complete <br /> filling of the slot bin depression to ground level, reshape the hillside below <br /> the old scale house adjacent to the railroad tracks until stable; remove the <br /> remaining metallic scrap located throughout the site, including the <br /> underground mining equipment and miscellaneous materials, and remove <br /> miscellaneous non-metallic trash and debris scattered throughout the site. <br /> Within fifteen days of receipt of such a document, MidCon will execute <br /> and deliver a document to DMG releasing any claim by MidCon against <br /> DMG for any further reclamation work or obligations by DMG at the Coal <br /> Loadout. Such documents shall be recordable in the real estate records <br /> of Pitkin County, Colorado." <br />