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Statement by Landowner: <br />I am the owner of the land (both coal and surface) situated at N1/2NW1/4, Section <br />25, T47N, R16W, NMPM in Nucla, Montrose County, Colorado (the "Property"). ] <br />have leased this land to Western Fuels -Colorado, LLC ("WFC") for coal mining in <br />accordance with a Lease Agreement dated December 20, 2007 (the "Lease"). <br />Because of lack of irrigation water, I have agreed in the Lease that WFC may, as a <br />matter of right under the Lease, reclaim the surface to dry land pasture after the <br />completion of the mining operation. With this letter I am requesting Division of <br />Reclamation, Mining and Safety to approve the post -mining reclamation of my land <br />as dry land pasture. <br />The Lease provides as follows (Section 4(a), Surface Use): <br />Lessor hereby grants unto Lessee the right to use the surface of the <br />Property in connection with its mining and removal of any Coal in, <br />on, or under the Property by any mining method, together with all <br />necessary and convenient rights with respect thereto. Lessor <br />acknowledges that the Coal may be removed by surface mining <br />techniques which require the removal of all Improvements (as <br />defined below), top soil and overburden in connection with the <br />extraction of the Coal. Lessee and Lessor agree that the land is non- <br />irrigated dry land pasture and Lessee agrees to reclaim the surface <br />(and is required by law to do so) to standards that will be included in <br />mining permits issued by the State of Colorado. <br />The Lease also provides (Section 4(d)): <br />Lessor consents to the reclamation of the Property in any manner <br />permitted by Lessee's mine reclamation plan, as the mine <br />reclamation plan may be amended from time to time. <br />I am aware that WFC is developing a mine operation and post -mining reclamation <br />plan for the approval of Colorado Division of Mining, Reclamation and Safety <br />(DRMS) in accordance with the rights and obligations created by the Lease. I agree <br />that I will review such plans and, if required, will execute any other document <br />required to satisfy DRMS requirement for land owner consent for an alternate land <br />use as long as such plans are consistent with the above terms of the Lease. <br />