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Dave Berry <br />June 8, 2012 <br />Page 2 of 7 <br />C S M B <br />In addition, though Mr. Guire claims to have provided the Division "all the leases and <br />associated documents" along with his complaint, he failed to provide the Division with two <br />particularly relevant ones, including (1) an assignment dated February 2, 2012, in which 4/7, <br />LLC expressly assumed the obligations of Lessor under the Mining Lease; and (2) a 2002 <br />document in which WFC agreed to release certain of the lands subject to the Mining Lease. <br />These documents are attached hereto and further described below. <br />In essence, Mr. Guire is attempting to argue that the lease is no longer valid based on an <br />inaccurate reading of the relevant documents, by ignoring the conduct of the parties under the <br />Mining Lease, and in the face of his own company's express assumption of that very Mining <br />Lease, which happened in the process of its taking title to the Property. <br />Statement of Facts <br />Western Fuels - Colorado's position is based on the following facts. <br />1. Western Fuels- Colorado currently holds Permit Number 1981 -C -008 from the <br />Colorado Division of Mining, Reclamation, and Safety, a unit of the Colorado Department of <br />Natural Resources (the "Division "), which authorizes the company to conduct mining and <br />reclamation activities on certain lands located in Montrose County, Colorado including lands <br />subject to this Complaint (the "Mining Permit "). The Mining Permit is a public document. <br />2. On February 2, 2012, 4/7, LLC purchased the following described Property in <br />Montrose County, Colorado from the previous owner, the San Miguel Power Association, which <br />had owned the Property since at least 1956: <br />3. By assignment in 1992 from Peabody Coal Company, Western Fuels- Colorado <br />became a successor in interest and has independently entered into various coal mining leases, <br />addenda, assignments, partial releases, and amendments thereto pertaining to the Property as <br />well as other lands identified therein (collectively, the "Mining Lease "). <br />{00103813.1 } <br />Lot 3 and SE /4NW /4, and NE /4SW /4, Section 6, T46N, R15W, NMPM, <br />Montrose County, Colorado. <br />4. The Mining Lease includes, but is not limited to, the following. <br />a. A May 21, 1956 Lease between the San Miguel Power Association, as Lessor, <br />and Edna Coal Company, as Lessee, as corrected by a revised legal <br />description dated March 19, 1960 (Exhibit A); <br />b. A May 12, 1977 Lease Amendment reflecting assignment of the lease from <br />Edna to Peabody Coal Company and extending the term of the Mining Lease <br />so that it shall continue until April 30, 1992 and "for so long thereafter as coal <br />or other mining operations are being conducted on the leased premises, or on <br />