Dear Mr.

Saupp; In your March 28, 2011 letter, you said that a lease concerning airport land cannot be canceled without an act of Congress. Exhibit 1 The Bureau of Land Management (BLM) granted Sec 32 Township 12 South, Range 4 West, New Mexico Meridian, to the New Mexico State Land Office (NMSLO). The NMSLO obtained Section 32 from the BLM in Land Patent #0615. Exhibit 2 In 2003, the NMSLO then leased the NE corner of Section 32 to the City of Truth or Consequences for an airport extension in SLO Lease BL 1615. Exhibit 10 On April 16, 2008, NM State Land Commissioner Pat Lyons canceled land lease BL 1615 with the City of Truth or Consequences without notice and without the required signed consent form from the City of Truth or Consequences. We just obtained documents showing that there was also no Act of Congress. Exhibit 3 This canceled lease involved the NE corner of Sec 32, Township 12S, Range 4W NMM. A portion of the City's airport's runway covers that land. Exhibit 4 Also on April 16, 2008, SLO Commissioner Pat Lyons issued a Land Patent 4350 to Greg Neal, dba Hot Springs Land Development, LLC. The land patent grants all of Sec. 32, T12S R4W, including the part of the runway for the airport in the NE quarter. Exhibit 5 The State Land Office did not tell the City that the lease BL 1615 had been canceled The SLO canceled the lease because Greg Neal told them to. Exhibit 6 Mr. Neal claimed authority through a contract for Exclusive Airport Management. The FAA refused to approve of the Exclusive Airport Management contract in Nov. 2007. Exhibit 7 The FAA's disapproval was kept secret until Nov 2008. Mr. Neal fraudulently claimed authority in order to cancel the City's lease BL 1615. Therefore, Mr. Neal obtained his land patent under false pretenses. Our state law allows for the land patent to be nullified in the case of a patent issued outside of the law. 19-7-8. [Cancellation of lease or contract obtained by fraud or mistake; notice to show cause; appeal. The commissioner shall have power to cancel any lease, contract or other instrument executed by him which shall have been obtained by fraud or executed through mistake or without authority of law. In such case he shall serve upon the party or parties in interest notice, as prescribed by Section 19-7-50 NMSA 1978 to show cause before him, upon a date to be fixed in such notice, why such instrument shall not be canceled in accordance with the rules and regulations of the state land office. Additionally, Mr. Neal represents a number of people who are bankrupt. If they are given money, then it goes to repaying debts. Those bankrupt people are: Bing Kearney, Brian Seeger, and Alan Payne. They are all listed as partners in Hot Springs Motorplex Development, LLC. Exhibit 9 Their judgments are attached. Exhibits 9a, b, c

The list of their top 20 debtors are at: http://www.scribd.com/doc/45952689/kearneybankrupt They also have a judgment against them concerning Renaissance Steel/Technologies, LLC, which mishandled a Federal Grant by failing to keep their promise to renovate a historic part of Tampa. Exhibit 9d Much of the City's funding is from grants and it would be a violation of our Constitution if any of the City's grant money went to them. The City submitted to the FAA a copy of the Request For Proposal for airport management/Fixed Base Operation, as it is in our Airport documents. However, the RFP was never advertised, which is required by the FAA. The Airport FBO bid was rigged. 1) It was never published. (Check http://archive.publicnoticeads.com/NM/search/searchnotices.asp) 2) The winner, Mr. Neal, offered the City a new FBO building as part of the bid. 3) No other offers were considered, because the RFP was not advertised as required. 4) The New Mexico Supreme Court has ruled that bid-rigging is a violation of our Constitution (STATE OF N.M. EX REL. KING V. LYONS, 2011-NMSC-004, __ N.M. __, 248 P.3d 878) 5) Bid-rigging is also a violation of the U.S. Constitution. On May 6, 2011, Jim Jackson of the NMSLO admitted to the City Manager that the Business Lease 1615 was canceled (Exhibit 6). Indeed, the NMSLO Record Division shows that the lease was terminated on April 16, 2008. An Inspection of Public Records Request has been sent to the NMSLO Records division, but it is in Santa Fe, and we can't get up there to inspect the records at this time. We will forward it to you as soon as we have the document. In the meantime, the notation that the Lease BL 1615 was terminated is on the website at: http://octane.nmt.edu/slo/lease_information.aspx To verify our statement that the lease was indeed terminated, please enter the lease number when prompted at the above hyperlink to verify the following, which was copied from the web page: 1 Company Name Ogrid Number Lease Number Status Link CITY OF T OR C 55150 BL -1615-0000 Terminated 4/16/2008 1 This lease information is in violation of the City's lease at #26, as is the sale of the leased land without notice. The lease in its entirety is Exhibit 10 Suspiciously, in a letter from the NMSLO, dated May 5, 2011, Jim Jackson says that Business Lease 1615 was never canceled and is in effect until 2028. Exhibit 11 However, even if the termination of the lease never happened (contrary to evidence), the change of ownership must be noticed and signed by both parties prior to the sale. The SLO failed to notice the City and obtain a signed affidavit of notice. Additionally, #21 of the lease subjects any lease-related improprieties to tort law. The above activities clearly illustrate that fraudulent activities have been occurring regularly around

the Truth or Consequences Airport development in regard to Hot Springs Land Development, LLC and Hot Springs Motorplex, LLC and their principles, the NMSLO, and the City of Truth or Consequences. It would be most disappointing if the FAA and federal grant money were also dragged into the mire. For these reasons (and more), the citizens of Truth or Consequences, 302 people, 9% of our voting population, signed a petition against the Motorplex Development in 2008. (Exhibit 8) The zoning has still not gotten through the courts, because of the ownership issue and 30 more actions outside of the law. Therefore Mr. Neal still does not have a vested claim to the land. Most of his talk involves giving him exclusive rights...to the airport, to water rights, etc. In the proposed sale of the NE Corner of Sec. 32, Mr. Neal sells land that he never owned. The FAA has prior claim to this land (NE corner of Section 32) as it is a public airport. The City paid over $37,000 for the lease contract in 2003 on the airport in accordance with FAA grant requirements. Exhibit 10 pg 3 #5 The state procurement code applies. It would be a travesty of a fiscal error for the City to pay Hot Springs Land Development another $7500.00 for this land. Even if it didn't involve over $20,000, part B applies. The NM State procurement code states: 13-1-30. Application of the code. A. Except as otherwise provided in the Procurement Code, that code shall apply to every expenditure by state agencies and local public bodies for the procurement of items of tangible personal property, services and construction. That code also applies to concession contracts at the New Mexico state fair in excess of twenty thousand dollars ($20,000), whether those concession contracts generate revenue and earnings or expand funds. B. When a procurement involves the expenditure of federal funds, the procurement shall be conducted in accordance with mandatory applicable federal law and regulations. When mandatory applicable federal law or regulations are inconsistent with the provisions of the Procurement Code, compliance with federal law or regulations shall be compliance with the Procurement Code. Alternatively, the FAA should overrule this land sale/trade/lease, because the ownership of the land is still in limbo, for the above reasons. Land Patent 4350 has tainted the land through mistake, fraud, and actions outside of the law. The only remedy is to void the land Patent. Our state laws allow for the restoration of granted lands when there has been a mistake, fraud, or an action outside of the law. In this case there has been all 3. NMSA 19-7-8 is the state law (free lookup at conwaygreene.com at: http://search.nmcompcomm.us/nmsu/lpext.dll?f=templates&fn=mainh.htm&2.0) At a time when corruption has almost completely destroyed our economy and continues to interfere with economic recovery, this corruption of necessary public transportation property, our airport, should not be tolerated. Thank you so very much for your time and consideration in this matter.

Sincerely yours, Kim Audette 618 Van Patten 575-740-1988 Truth or Consequences, NM 87901 Sophia Peron 316 N. Jeoffre Alley 575-894-0528 Truth or Consequences, NM 87901