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Bruce G. Smith <br />Western Gravel, LLC <br />% Donald Valentine <br />P.O. Box 1231 <br />Meeker, CO 81641 <br />valentine383@aol.com <br />Gary R. Webber, P.G. <br />North West Colorado Consultants, Inc. <br />2580 Copper Ridge Dr. <br />Steamboat Springs, CO 80487 <br />Facsimile (970) 879 -7891 <br />VL4 E- MAIL/FACSIMILE <br />AND UNITED STATES MAIL <br />Dear Sirs: <br />Darling • Milligan • Smith & Lesch, PC <br />November 6, 2012 <br />Re: Noticed planned amendment of WRC pit permit <br />This firm represents Sam and Ginny Love regarding the various agreements with Western <br />Gravel, LLC, and the continuing issues thereunder. The Loves have received from North West <br />Colorado Consultants a copy of the Legal Notice related to planned amended use of the WRC <br />Pit. <br />We understand that the Loves have been in discussion with you regarding a new gravel lease or <br />an outright purchase or sale of the gravel property, but that these have not borne fruit to date. <br />1331 17th Street, Suite 800, Denver, CO 80202 <br />Phone 303.623.9133 • Fax 303.623.9129 • www.dmsl lawcom <br />Direct 303.260.5042 <br />Email bsmith @dmsl- law.com <br />Please be advised that pursuant to the parties' Agreement dated December 16, 2010, and the <br />Partial Release of Gravel Lease Agreement dated December 30, 2010, Western Gravel has no <br />rights in the Phase II property described in the documents, except to the limited extent of a <br />disposal permit as set forth in paragraph G of the Agreement. We understand that the permit <br />Western Gravel currently has from the State, and that by which it seeks amendment, may include <br />gravel extraction from the Phase II property. As Western Gravel no longer has any such rights <br />by virtue of termination of its option on that property, its existing permit and the proposed <br />amendment may be void and subject to denial. In addition, there has been no agreement on the <br />Reverse Royalty under paragraph H of the Agreement, nor even negotiation thereon. <br />