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Based upon our telephone conversation of October 8, 1973, I am supplying
you with the following information regarding Mr. Elmer Gibson's claims
against Mr. Ralph Schauss.

1. Mr. Gibson claims a 1% royalty on Montana coal lands.
2. Mr. Gibson claims a 5% interest in Colorado iron lands.

3. Mr. Gibson claims $28,000 beina, owed from that agreement
entered into by Mr. Schauss which is the subject of the pending civil action
in Natrona County.

4. Mr. Gibson claims that he is owed approximately $45, 900 for validation work done in Sweet Water County, Wyoming. Mr. Schulss agreed to pay Mr. Gibson 10¢ a foot for validaiing claims in that area; he validated approximately nine thousand claims, although the exact number is still rather vague.

5. Mr. Gibson claims approximately $1,400 for staking work done in connection with the rob claims. Mr. Gibson and Mr. Schauss agreed that Mr. Gibson would be paid $7 per claim for the staking.

6.

Mr. Gibson claims approximately $2,800 for staking work done in connection with the lola claims. Again, Mr. Gibson and Mr. Schauss had agreed on a figure of $7 per claim and there are four hundred claims within the group:

7. Mr. Gibson claims $1,338.1.. as a consequence of a repair bill that he paid for Mr. Schauss.

To my knowledge and after extensive discussions withi my client, the above represent a full and complete list of claims that Mr. Gibson has against Mr. Schauss. By the same token, I am sure that Mr. Schauss has certain claims against Mr. Gibson, namely notes that he has paid as an accommodation to Mr. Gibson. In this regard for purposes of settlement, I have often stated to you that the obligations owing by Mr. Ciibson to Mr. Schauss could be

deducted from any settlement reached by Mr. Schauss and Mr. Gibson. Moreover, I am convinced that the claim that Mr. Schauss alleges against 11:. Gibson for expenses in the approximate amount of $11, 000 should not impede settlement; from the information I have received, Mr. Gibson can at least substantiate approximately $10, 500 of that total sum.

In all candor, I must express to you my feeling that settlement of the above matters does not seem to be a viable possibility. Mr. Gibson has made very reasonable offers of settlement with no apparent results. Unless that siiuation changes in the inmediate future, I foresee no other choice' it to commence litigation.

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August 25, 1975

Gulf oil Corporation 1720 So. Bellair Street Denver, Colorado

Attention: Mr. Frank Mesaros

Land Department

Dear Franki

Please be advised that I have caused to be overstaked claims in the "Bow" group of claims located by Gulf Oil Corporation ln Township 17 and 18 North,“ Range 81 Hest, Carbon County, Wyoming.

This letter is to advise your company that Gulf oil Corporation has filed. 368 false affidavits in the Carbon County Courthouse in August, 1975, stating that Gulf Oil Corporation bas located the above mlaing claims and that it has completed the drilling or validating work as required by law. The latter work has not been done according to law,

Natrona Service bas worked for Gult 011 Company many times in the past and it is beyond my comprehension bow your company can abandon all ethics and knowingly file the above mentioned false affidavits in the interest of. saving a few dollars rather than to comply with the law and have a valid clala,

You certainly must be aware of the conflict now going on between Natrona Service and KertHcGee, : Conoco and Phil11ps. These companies, by virtue of their callous disregard of the Wyoming Mining Laws and filing of false affidavius, have contributed to the complete ruia of a once pros fitable and viable business and constituted a fraud on the citizens of this state, At a time when the merg companies are under the spotlight of all of their many enemies, I'fail to see that your company can afford this attitude,

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I see no course open to me than to advise my attorneys to include Gulf 011 Corporation in the damage suit recently flled by Natrona Service in Wyoming Federal District Court.

Very truly yours,

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Guls Energy and Minerals Compuasy

1720 So. Bellaire St. Denver, CO 80222

August 28, 1975

Ute Engineering & Surveying Company
P.O. Box 674
Delta, Colorado 87416

Dear Mr. Schaaf:

In accordance with our discussion on August 27, 1975 you are authorized to proceed with the validation of 246 Federal Mining Claims in the Medicine Bovi National Forest, Carbon County, Wyoming.

The area of interest for this project will be outlined further on maps and by myself.

Cost of this project to be $10,500.00. All payments to be jointly paid to Ute Engineering & Surveying Company, and United Bank of Delta, Delta, Colorado.

Please acknowledge your acceptance of the above by executing one copy of this letter in the space provided and return it to this office for our files.

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The foregoing was acknowledged before me this 29th day of August, 1975, by Wes
Reeves for Gulf Energy and Minerals Company and by Earnest Schaaf for Ute
Engineering & Surveying Company.

Gu!)

Carst thisburg

My commission expires 6-27=79

A DIVISION OF GULF OIL CORPORATION

TELEPHONH (303) 758-1700

January 15, 1976

Gull 011 Corporation
Gulf Building
Pittsburgh, Pennsylvania

Attentioai: Mi. Jerry McAfee, Chairman of the Board ¢ Chief Executive

Officer

Dear Mr. McAfees

Thi. is a difficult letter for me to write. First, allow me to congratulate you on your elevation to your present position.

I a enclosing, for your perusal, copy of a letter written August 25, 1975 to your Denver office, attention Mise, Mesaros. . The letter is self-explanatory. You can see from this letter that I have, in writing, accused Gulf, along with several other companies, of filing false affidavits concerning mining clalas in Wyoming.

I have worked for Gulf for many years as a contractor la the mining business and my work has been satisfactory, us none of my clients to date have ever lost mining claims that were staked by my fin, nor have any of then ever been successfully attacked in court, My firm bas been the victim of short-sighted thinking by lower echelon employees upon whom ex-.. cessive responsibility has been placed. My business, in effect, bas been ruined by these lower echelon employees attempting to save money at the xpense of corporate reputation and ethics,

I pointed this out to Kert-McGee and Continental Oli Company, in the hope that the chief executive officers of these corporations would see fit to impartially investigate my charges through people disassociated with these lower echelon employees, but to no avail.

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Because of this attitude, we are now all involved ia long drawn-out lawsuits, which can only result in creating additional problems.

I realize that this is an unpleasant item to present to & man who has recently taken on a post such as yours, but I am doing it in an effort to bring to your attention a situation which need not exist, and does so only because of incompetence in misplaced authority at the lower levels,

At the risk of sermonizing, no corporation which works as hard to maintain a good inage, us out major oil companies attempt to do, needs to stoop to breaking laws and committing felonies in order to save

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