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Jan. 20, 1977
at 8:00 A.M.

Re:

Fremont Energy Corporation
1660 So. Albion

Suite 515
Writer's Tower Bldg.
Denver, Colorado 80222

Title Opinion
Lode Mining Claims
Sweetwater County, Wyoming

Gentlemen:

As of the above date, I completed an examination of the records described below, insofar as they cover the lode mining claims listed in Exhibit A attached hereto. On the basis of that examination, it is my opinion that said mining claims are owned as set out below.

Records Examined:

1.

Direct examination by the undersigned of the records of
Sweetwater County, covering all of said mining claims from
inception of title to the date hereof.

2.

Direct examination by the undersigned of the records in the.
Land Office, Bureau of Land Management, Cheyenne, Wyoming,
covering all of the lands affected by said claims from
inception of title to the date hereof.

3.

Title materials furnished by you, consisting of copies of
proofs of labor for assessment work performed to current
date and other instruments pertaining to said claims.

Summary of Title:

Subject to the comments set out below, it is my opinion
that said mining claims are owned by Fremont Energy Corporation
(85%) and Minerals Exploration Company (15%). Insofar as
shown in the records examined, said claims are valid and
in current good standing.

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Comments and Requirements:

1.

All of the subject claims were located in 1968 and are
therefore subject to the Act of Aug. 13, 1954 and do not
affect minerals which are leasable under the Act of Feb. 25,
1920, as amended.

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2.

The ROB claims are free of any liens or encumbrances of
record. The MAT claims are subject to ” of 1% overriding
royalty owned by Lavern R. Matlock and \ of 1% owned by
Swift Realty Company. The interest of Lavern R. Matlock
was committed to an agreement dated March 8, 1974, granting
an option to John II. Jebsen to purchase thc interest.
records do not indicate whether or not the option was
exercised.

The

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3.

The location certificates are in proper form and recite proper posting and the discovery of uranium, thorium, or other valuable minerals. The county records contain proper affidavits that the required annual assessment work has been performed on the .claims. In this opinion, I have relied upon the recitals contained in the location, certificates and affidavits of assessment work.

Requirement: Satisfy yourself by actual field examination of the affected lands and of the evidence of discovery and performance of assessment work that the recitals contained in the cited instruments are correct. The lands covered by the claims consist of unpatented public doma in and lands patented into private surface ownership with all minerals reserved to the United States. The federal records reflect no withdrawals, reserve designation, or mineral classifications which would bar mining entry at the time the subject claims were located. Most of the lands have been classified for multiple use management under Public Law 86-607, have been classified valuable for coal, and are subject to federal oil and gas leases. The conduct of exploration or development for coal or oil and gas is no bar to mining entry but may cause some interference with mining operations. The applicable laws and regulations contemplate such multiple uses of public lands, but do not define the relative rights and obligations of the various users with respect to each other. As to the lands which have been patented with all minerals reserved to the United States, the mining proprietor and the surrace owner have reciprocal rights and obligations in their use of the land.

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5.

The lands covered by the claims are subject to several
rights of way granted by the United States. In my opinion,
each of the rights of way constitutes a inere easement
entitling the holder to use the surface of the land for the
granted purpose but the rights of way do not bar mining entry.

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6.

The county records reflect various mining clains which :nay
have been in conflict with the subje claims. However,
there is no indication in the records examined that the
subject claims were located in trespass on prior valid claims
or have become subject to valid relocation.

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Requircment: The surface inspection recommended above should
include search for any evidence of mining claims adverse
to the subject cla ins. Any such evidence should be reported
to counsel for possible further requirements

7. Irregularities in area or boundaries not shown in the official

survey plats and unrecorded possessory claims, liens, easements, and improvements are not disclosed in the records examined.

The lands should be inspected carefully for

Requirement:
such matters.

Yours very truly,

inle.
James R. Learned
Attorney at Law

JRL:Vw

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Following my testimony before your Subcommittee on October 17, I was troubled that I had not adequately conveyed to you the commitment of the Washington Public Power Supply System to abide by all requirements of law applicable to the mining claims which the Supply System has under option from Fremont Energy Corporation. The Supply System is a public agency. In the past, it has met fully all its obligations under the law, and it will continue to do so in the future.

Therefore, I am enclosing a supplemental statement, and I request that you authorize its inclusion in the record of your Subcommittee's hearings.

Again, thank you for the opportunity to testify on the important issues being addressed by your Subcommittee.

Sincerely,

han halen

EDWIN F. ALDEN
Staff Attorney

EFA: vm

Enclosure

SUPPLEMENTAL STATEMENT

OF
WASHINGTON PUBLIC POWER SUPPLY SYSTEM

As the Washington Public Power Supply System has

stated previously, a combination of two present-day uranium

market conditions--extremely high prices and unreliable

sources of supply--resulted in the Supply System's decision

to begin a long-term program of acquiring lands with uranium

potential.

The objective of this program is the mining and

beneficiation of uranium deposits by the Supply System for

use in its five nuclear power plants.

The Supply System's

intent is, and always has been, to develop uranium resources

promptly so it can use them in nuclear plants which are

scheduled for service in the 1980s.

The process leading to actual production, however, is

lengthy and expensive.

Uranium does not occur in veins or

seams, as does coal.

Commercially recoverable uranium

frequently lies deep underground, many hundreds of feet below the surface and many miles' distance from surface indications of its presence. Therefore, any uranium exploration program must begin with the acquisition of large areas of land. The exploration process, consisting of deep drilling to 500 or 1,000 feet, is one which continually

narrows the area of focus.

Most of the land originally

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