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:R • • iiiiuiiiiiiiiuiu DUNCAN fd MILLER ATTORNEYS AT LAW 1022ve Mmn Avenue P. 0. Box I79 D URANG O, COLORADO 81302 o...v,o w. ouncwN 7elepho~a (303) 259-3000 1~y-.; ~ F, SCOTT M. MILLER 1Y R~~~~~~ ~~ OAViO L.O,OR~N3GN SEP 16 i9d~~ MINED LAtJU Septemberll, 1985 DECLAMATION DIViS10PJ Mr. Michael B. Long Senior Reclamation Specialist Mined Land Reclamation Division Colorado Department of Natural Resources 1313 Sherman St., Rm. 423 Denver. CO 80203 Re: MLRB Permit for Coal Mining - Peerless Resources, Inc. Dear Mr. Long: Pursuant to our oral conversations, it is my understanding that Peerless Resources, Inc., 5528 Indian Rock Road, Salt Lake City, Utah has applied for a coal mining permit at what is popularly known as Coal Gulch Mine west of Durango. Peerless Resources had previously received a exploration permit on this property, application no. CX-191-00. Per our conversation, please be advised that our client, Melco, Inc., has a mechanic's lien upon the property for which *_he permit is sought. A copy of this mechanic's lien is attached for your convenience. It is also our understanding that several ether people claim lien interests on this property. Further, be advised that, in the case of Me1co Inc. v. Peerless Resources, Inc. et al., La Plata County District Court, Case No. 5CV 73, t e Court has granted our Motion for Pre-Judgment Attachment of coal in place on this property. A copy of this Order is also enclosed. We are currently in the process of obtaining the bond necessary to have the Sheriff serve the Writ of Attachment. Also per our conversation, please furnish us with copies of all application documents submitted by Peerless Resources, Inc., including but not limited to copies of the leases or other docu- ments by which Peerless Resources claims title to the coal and the right to use the surface for mining activities. If there is a charge for these copies, we will be happy to remit our check in advance or to pay the bill upon receipt.