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From: (b) (6)

To: (b) (6)
Subject: FEIT
Date: Tuesday, May 15, 2007 12:53:14 PM

Item #1: A question arose during the FEIT teleconference today. The discussion revolved around the
real estate problem that has developed regarding the Columbus Cattle Company (CCC) west of
Columbus, New Mexico. The CCC does not wish to sell at any sort of a reasonable price.

This is a P-70 project, and due to the roadblock thrown up by the CCC, the Corps wants to move a
mile of fence planned for CCC land to the west end of the project and build it there. The issue is that
this new mile is part of P-225. Will this be permitted? The idea is not to move a P-225 segment into
P-70, rather to build the segment of P-225 now rather than later. This way the same amount of fence
is built, though not during the correct fiscal year.

I told the FEIT that I’d vet this idea through Chief Self, so as soon as you have an answer for me, I’ll
send it off to the FEIT unless it has been handled at a higher level.

Item #2: We can expect to see a USACE cover letter to accompany the Right of Entry (or perhaps the
MOA). As they said they’d vet it through OBP, I figure we can deal with that when it arrives.

Item #3: What is the OBP decision regarding the acquisition of mineral rights? According to one of the
FIET participants, if we don’t acquire them, we could find ourselves in a second position, possibly
having our fence destroyed in the mining process without reparations. As minerals may well include
such things as sand and gravel, I expect that our legal team should address this issue.

Thanks for speaking to the issuing of letters for various reasons by the USACE. Obviously, this issue
is a hard topic for them and will require our diligence to stay on top of the high volume of

The USACE is traveling this week, along with SBI representatives, to the RGV to verify whether or not
the sector is satisfied regarding the movement of the fence project to the levy. They are concerned
that they do all they can to avoid having an angry customer.