2015-04-17_REPORT - M1977004 (2)

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The amount of this Financial Warranty is based upon estimates as to the cost of reclamation, and does not operate to liquidate, limit, enlarge or restrict the Operator's obligations to complete reclamation and to comply in all respects with the permit and with applicable laws and regulations governing reclamation. even though the actual cost thereof may substantially exceed the amount of this Financial Wurranty- The Warrantor shall notbe liable under this Financial Warranty for an amount greater than the sum designated herein, unless increased by a later amendment to this Financial Warranty. This Financial Warranty shall be reviewed by rho Board from time to time, and the Board tray require an increase in the principal sum of this Financial Warranty (and a corresponding increase in the surety amount) to cover Increases in the estimated costs o£reclamatlon, but no such increase shall bind the Warrantor unless and until it shall have consented thereto in writing by the issuance of an additional Financial Wmrarnty orby an endorsement to this Financial Warranty. Tbc Warrantor resevcs the right to cancdthis Futancial Warranty, effective only upon an anniversary date, and only by giving written notice to that effect, mailed by Cetified Mail, at least ninety (90) days prior to such anniversary date, addressed to both the Operator at its address herein stated, and to the Board at the address herein stated. In the event of such cancellation, this Financial Warranty shall nevertheless remain in full force and effect as respects the reclamation of all areas dishdW prior to the effective date of such cancellation, unless and until the Operator shalt file a substitute Financial Warranty which: (1) assumes liability for all reclamation obligations which shall have arisen at any time while this Mancial Warranty is in force; and (2) is accepted in writing by the Board. In the cveat•of such cancellation, if the Financial Warranty is not fullyraleased, the amount of the continuing Financial Warranty available for the reclamation ofareas disturbed and unredaimed at the date of cancellation shall be fixed by the Board at the amount it determines necessary to complete such reclamation (which amount may not mw=d the sure designated herein) and the Be and shall concurrently idea* such areas in writing, and notify the Warrantor and the Operator thereof: Thereafter, the obligation of the Warrantor shall be limited to reclamation. of the areas so identified I The consideration for the Warrantor's execution of this agreement is the promise of the Operator to pay the ,premiums, but failure; by the Operator to pay such premiums shall not invalidate or diminish the Warrantor's obligation hereunder.' The Board rasay make demand upon the Warrantor for payment hereunder if the Board determines that reclamation which ought to have been performed by the operator, or its sucewsors or assigns, remains unperformed, and if Financial Warranty forfeiture procedures required by law have been initiated. No other condition precedent need be fulfilled to entitle the State to receive the amount so demanded. However, fly upon completion of reclamation by the State, the amounts expended for reclamation shall be less than the amount received from the Warrantor, the excess shall be promptly refunded to the Warrantor. If demand is made upon the Warrantor for payment of an amount due to the Board hereunder, and if the Warrantor fails to make payment of such amount within ninety (90) days after the date of receipt of such demand, or if it should thercafter be determined, by ageemteat of the W turantor or by final judgment of court, that the amount demanded was properly payable, the Warrantor agrees to pay to the Board, in addition to the amount demanded, interest at the prime rate in effect from time to time at The United Bank of Denver for the period commencing at the end of such ninety -day period and ending on the date of actual pavmenL