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3. Defendant 4/7, LLC is a Colorado limited liability company that owns the Subject <br />Lands described below and does business in Montrose County, Colorado. <br />4. This Court has subject matter jurisdiction over these claims and personal <br />jurisdiction over the parties. A present case and controversy exists between Western Fuels - <br />Colorado and defendant. The dispute concerns rights to access, use, and conduct mining <br />activities including reclamation activities on real Subject Lands in Montrose County, Colorado. <br />5. Venue is proper in this Court pursuant to C.R.C.P. 98. The real Subject Lands at <br />issue in this case are located in Montrose County, Colorado, as is defendant, who owns the <br />Subject Lands and regularly does business in this County. <br />6. Defendant 4/7, LLC owns the surface estate of the following real Subject Lands in <br />Montrose County, Colorado: <br />Lot 3 and SE /4NW /4, and NE /4SW /4, Section 6, T46N, R15W, <br />N.M.P.M, Montrose County, Colorado. <br />Hereinafter, the "Subject Lands." <br />(a) May 21, 1956 Mining Lease between the San Miguel Power Association, <br />as lessor, and Edna Coal Company, as lessee, as corrected by a revised <br />legal description dated March 18, 1960 (Exhibit A); <br />Jurisdiction and Venue <br />7. Western Fuels- Colorado has entered into various coal mining leases, addenda, <br />assignments, partial releases, and amendments thereto pertaining to the Subject Lands <br />(collectively, the "Mining Lease "), and has obtained permits from the State of Colorado granting <br />Western Fuels- Colorado the right to explore for, mine, remove, and sell coal from the Subject <br />Lands, and to reclaim all such lands following mining activity as required by C.R.S. <br />§§ 34 -33 -101, et seq. <br />8. The Mining Lease includes, but is not limited to, the following: <br />(b) May 12, 1977 Addendum to Mining Lease reflecting assignment of the <br />lease to Peabody Coal Company and extending the term of the Mining <br />Lease so that it shall continue for a 15 -year period and "for so long <br />thereafter as coal or other mining operations are being conducted on the <br />leased premises, or on any part thereof, or on any contiguous or nearby <br />lands as a part of a continuous or integrated mining operation or mining <br />plan, unless sooner as herein elsewhere provided" (Exhibit B); <br />(c) Extension of Mining Lease dated February 19, 1992, extending the date <br />referenced in Exhibit B by one year, to April 30, 1993 (Exhibit C); <br />{00105064.1 } 2 <br />