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Huerfano County <br /> Page 2 <br /> WHEREAS,the Operator hereby gives the Board a performance warranty pursuant to Section 34-32-117(2)or <br /> Section 34-32.5-117(2)of the Act, and herein promises the Board that it will comply with all applicable <br /> requirements of the Act with regard to those Affected Lands. <br /> NOW, THEREFORE, the Operator hereby promises the Board that it will comply with all applicable <br /> requirements of the Act and rules and regulations of the Board with respect to the Affected Lands. <br /> FURTHER, the Operator hereby promises the Board that it will comply with all of the terms of the <br /> application for a permit, as amended and supplemented, as well as any conditions attached to the permit by the <br /> Board. <br /> FURTHER,the Operator promises the Board,pursuant to 34-32-112(2)(d)or 34-32.5-112(1)(c)(iv)of the <br /> Act, that it has the lawful authority to enter upon the Affected Lands to conduct mining operations, including,but <br /> not limited to, reclamation. The Operator further recognizes the right of the Board to enter to reclaim lands <br /> affected by the operation. <br /> The description of lands herein is for convenience of reference only, and no error in such description, nor <br /> any revision of the permitted mining area, nor the disturbance by the Warrantor of lands outside of the permitted <br /> mining area shall alter or diminish the Operator's obligation hereunder, which shall extend to the reclamation of <br /> all such lands disturbed. <br /> The obligation of the Operator hereunder is such that, if the Operator shall successfully comply with the <br /> requirements of the Act, applicable rules and regulations, and the permit, then the Board, upon a finding that the <br /> Operator has so complied, shall release this performance warranty, and the Operator from its obligation <br /> hereunder, to the extent that the Board determines that such compliance has been accomplished. The obligation <br /> of the Operator hereunder shall continue until released in whole or in part by the Board in accordance with <br /> applicable law. <br /> In further satisfaction of the requirements of the Act, the Operator promises to be responsible for the cost <br /> of reclamation up to the amount established by the Board and has attached hereto its financial warranty, which <br /> may be amended from time to time. The Operator agrees that it will maintain a financial warranty(or warranties) <br /> for the estimated costs of reclamation in good standing for the entire life of the permit. Please note that under the <br /> provisions of the Colorado Mined Land Reclamation Act and the Colorado Land Reclamation Act for the <br /> Extraction of Construction Materials, any Applicant or Operator that submits proof, acceptable to the Board or <br /> Division of Reclamation, Mining and Safety, that an Applicant or Operator is a unit of County or Municipal <br /> government, or is a department or division of State government, the Applicant or Operator is not required to <br /> submit or post any other instrument of financial responsibility but hereby promises to be responsible for the cost <br /> of reclamation up to the amount specified by the Board. <br /> If the Board determines that the Operator is in default under this performance warranty and has failed to <br /> cure such default, although written notice of such default and ample time to cure such default have been given,the <br /> Operator's financial warranty shall be subject to forfeiture. <br />