Santa Fe Trail Ranch ATTN: Applicable Divisions P.O. Box 870 Trinidad, CO 81082

April 1, 2003

SENTCERTIFIED MAIL - RETURN RECEIPT

Dear Ladies and Gentlemen;

Since my arrival on the Santa Fe Trail Ranch (SFTR) on or about the 20 of August, 2001, I have engaged in numerous of concerns dealing with the procedures and processes utilized by the Santa Fe Trail Ranch Corporate Officers, Committees and their authorized agents.

Over the course of these last twenty-one months, I and my family have endured undue stress and hardship in dealing with the Santa Fe Trail Corporate Officers, Committees and their authorized agents using improper and ambiguous definitions and terms inconsistent with the Santa Fe Trail Ranch Corporate Documents, the Colorado Business Corporation Act, Colorado Revised Nonprofit Act, Common Interest Ownership Act and the Colorado Condominium Ownership Act.

Members of the Board of Directors have participated in an official capacity as witnesses against me, on behalf on another property owner, without subpoena and in direct conflict of their positions and duties. SFTR Board members have submitted official SFTR Property Owner Association (POA) corporate documents without subpoena in order to squelch this association member’s activities in disclosing SFTR POA improprieties. Your Corporate Officers have removed fellow directors with inappropriate methods and unethical practices for opposing improper SFTR Corporate practices and activities; leaving the SFTR POA at risk for lawsuit.

The SFTR POA Board has permitted improper types of homes to be established on the ranch, reducing the overall property value potential of individual lots. The corporate officers have created a hostile work environment for association members inconsistent with required policies and procedures under the Colorado Business Corporation Act, as a Colorado Non-Profit Business. Member’s that challenge the corporations’ arbitrary definitions and discriminatory practices undergo character assassination and are labeled as hostile, contentious or other derogatory comments in an attempt to render the association member’s position, stature or business ineffective.

The SFTR Corporate Boards apathetic approach to SFTR POA business; impassiveness to the issues and concerns of property owners outside of their circle of friends or neighbors is improper, discriminatory and a dereliction of their corporate duties. In twenty-one months, there has been no satisfactory progress in the areas of covenant control, instituting the water system, ranch security or effective maintenance of the roads. Board members has been completely ineffective in obtaining the active participation of the majority of members; relying on a futuristic plan of waiting for a majority of owners to physically move onto the ranch - an accomplishment that has not occurred within the last twelve years.

The SFTR POA BODs improper oversight and accounting methods have resulted in potential risk to POA funds with its intertwined relationship with the Metro District Water Company. Recent communications from the Metro Water District threaten the use of assessments on individual property lots; inconsistent and unauthorized under current governance documents. These documents, sanctioned by the SFTR POA BOD were placed onto the SFTR Website without legal review; a stipulation required by the communications committee, per email Patrick Roehl, dated 11/20/02, “I have received your post requests and have been instructed by George Gonzalez, Chairman of the Communications Committee, that I should wait until Mr. Gonzalez has obtained legal interpretation of all that is in these postings. He expects that it will take him at least two weeks to sort this out, assuming that nothing else preempts his efforts”. In fact, this article has not ever been posted on the web site, nor has any explanation been given for it not being made available.

It is unfortunate that the SFTR Corporate Board, our “fellow neighbors” and “elected officials”, deem themselves and their actions above the law, that they can create their own law by creating a new definition or an arbitrary interpretation of the governance documents.

It is therefore this owner’s official demand under the Santa Fe Trail Ranch Corporate Documents, the Colorado Business Corporation Act, Colorado Revised Nonprofit Act, Common Interest Ownership Act and the Colorado Condominium Ownership Act of the following:

1. An immediate suspension of all homes, dwellings, facilities and building that are listed under the legal State of Colorado definition of Mobil, Mobile or Manufactured Home. All illegally placed homes in violation of the effective definition be issued summons of their violation with the opportunity to apply for permit under the proper governance documents; following the proper issuance guidance of said documents.
2. The immediate resignation of the following directors for improprieties:
   1. Mike Shelton .
      1. Whereas, as President of the Board of Directors, Mr. Shelton initiated an unlawful procedure to dismiss a fellow director without cause and without the proper majority vote under Article IV.3 of the Association By-laws; this is in violation of Article IV.3 of the Santa Fe Trail Ranch Property Association By-laws and Colorado Statue 38-33, Colorado Condominium Act.
      2. Whereas, as Director, Mr. Shelton was required to investigate the violation of a CCR complaint initiated by an association member, to wit, Health and Zoning violation of Lot 44. Mr. Shelton reported he investigated and determined no violation. Whereas, said property was registered as a 2001 Mag. 16x54 Mobil Home (Las Animas County Assessor Record , Book 1004, Page 146, dtd 4/2/2002) and therefore is not compliant with Colorado Statue in regards to the minimum structural offset from a manufactured home. Mr. Shelton did not investigate the assessor’s records for if he did it would have been noted that the structure on Lot 44 of the complaint is in direct violation of Article V.6 and V.8 of the CCR and that the near-by structures where in violation of state zoning ordinances for minimum distance from a manufactured home. Additionally known fact of the case:
      3. The additional structure is an animal kennel that is used for animal breeding and sale; which is a commercial business in direct violation of the CCR.
   2. Harriett Vaugeois .
      1. Whereas, as President of the Board of Directors, Mrs. Vaugeois initiated an unauthorized procedure of representation in the 8th District Combined Courts of Las Animas County without Association authorization or subpoena.
      2. Whereas, as President of the Board of Directors, Mrs. Vaugeois initiated an unauthorized procedure of introduction of SFTR POA Association corporate records, to wit, secure discussion forum documents, into evidence without Association authorization or subpoena.
      3. Whereas, as President of the Board of Directors, Mrs. Vaugeois initiated an unauthorized procedure as character witness for a defendant that was a SFTR property owner over that of another SFTR property owner without Association authorization or subpoena.
      4. Whereas, as President of the Board of Directors, Mrs. Vaugeois initiated an unauthorized procedure of influencing a vote; whereas Mrs. Vaugeois utilized her position in nominating a candidate for Director, to Wit, Diane Rader; including writing numerous articles that were posted on the SFTR website.
      5. Whereas, as President of the Board of Directors, Mrs. Vaugeois initiated an unauthorized procedure of influencing a vote; whereas Mrs. Vaugeois utilized her position in slandering a candidate for Director, to Wit, D. Lee Phelan with false allegations and innuendo to have the candidate drop from the race. Mrs. Vaugeois initiated an unsolicited email campaign to denounce the association member and threaten association members of a directorship walkout should the candidate be elected.
      6. Whereas, as Director and Covenant Committee Chairperson, Mrs. Vaugeois initiates continued campaigns of harassment against association members she does not have a favorable opinion of.
   3. Rick Johnson
      1. Whereas, as President of the Board of Directors on November 16th, 2002, in discussion from the floor about the dismissal of Bob Santoro, Mr. Johnson stated, “this action was taken by the Board after thorough consideration and council.”
      2. Whereas the action taken was in direct retaliation of Mr. Santoro protecting the constitutional rights of a fellow association member and therefore not appropriate for consideration for dismissal.
      3. Whereas the action was taken without proper legal preparation and in direct violation of the SFTR POA Bylaws and Colorado Statue 38-33, Colorado Condominium Act.
3. The immediate censor of the following Corporate Director:
   1. George Gonzalez
      1. Whereas, Director and Chairperson of the Communications Committee, Mr. Gonzalez has knowingly and willing prohibited the posting of association member redress articles; knowingly enacted restrictions to corporate common areas and individual censorship of association member’s comments.
4. All Corporate Directors be removed from all committee’s. That all committees undergo re-staffing, to include the inclusion of an unbiased third party member not assigned to the ranch, a minimum of 7 members per committee be established. Should there be less than seven active member’s, all functions for that committee should be suspended until active participation of the association membership permits its reintroduction, that
5. During the upcoming 2003 election process, all corporate director positions are vacated for election. Secure online voting is established through the use of an independent third party company, that
6. An independent legal review of the Governance Documents be conducted by a organization selected by the Bar Association of Colorado and outside of the Las Animas County center of influence, that
7. An immediate suspension of all contracts pending a third party audit of financials, including the Metro Water District; including a corporate financial review of the SFTR Corporations compliance under the Colorado Revised Non-Profit Act dealing with the annual disbursements of unused association funds to property owners.

It is deeply regrettable that the only way to make the ranch operationally better, is to legally challenge the abusive powers instituted by the governance employees of the Santa Fe Trail Ranch. It is unfortunate that the SFTR POA Board of Director’s impassive observance of property owner grievances is acknowledged with discriminatory, inconsistent and arbitrary conjecture – not reviewed, documented and referenced judgments.

I have observed the corporate officers inability to lead, their unwillingness to follow, its time for them to move out of the way.

Sincerely;

Darrel L. Phelan, SR.
SFTR Association Member and Property Owner

7901 Bear Paw
Trinidad, CO 81082

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