Well, I emailed the FAA about it and here was their response:

"The company certainly has the responsibility to process an additional copy of your records for you if you checked the "yes" block on form 8060-11A, which you state that you did.
This should be all that you need, and not have to submit an additional
letter of request. I have never heard of a company requiring an
additional request other than that on the 8060-11A.

Next issue is the charge, and the answer is yes, they can charge a fee
for the copying of the records. $35.00 is slightly high but not
unreasonable. I have had to help with cases where the company wanted as much as $300.00 for the records, both from the requestor and the pilot. In addition, they do not have the authority to withhold your records until receipt of your check, but many companies do, knowing full well that there is really nothing (in real life) that the FAA has time to take care of. We just
depend on the honesty and integrity of the companies to do what is
right. I would suggest that you send a letter with your check that simply
states that "this is for your copy of the records requested on FAA Form
8060-11A, in accordance with 49 U.S.C. section 44703(h)(6)( and (7)."

Helpful but not the answer I wanted All well, there it is for future generations.