2016-05-18_REVISION - M1982036 - Laserfiche WebLink

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-3— In any single year during the life of the permit,the amount of the Financial Warranty shall not exceed the estimated cost of fully reclaiming all lands to be affected in said year, plus all lands affected in previous permit years and not yet fully reclaimed. Reclamation costs shall be computed with reference to current reclamation costs. 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 Permittee's or Principal'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 Warranty. The Mined Land Reclamation Board or the Office of Mined Land Reclamation may recover the necessary costs,including attorney's fees or fees incurred in foreclosing on or realizing the collateral used in the event this Financial Warranty is forfeited. The face amount of this Financial Warranty shall be increased by five hundred dollars($500.00)to cover these costs. The Surety shall not be 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 the Board from time to time,and the Board may 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 of reclamation,but no such increase shall bind the Surety unless and until it shall have consented thereto in writing by the issuance of an additional Financial Warranty or by an endorsement to this Financial Warranty. The Surety reserves the right to cancel this Financial Warranty,effective only upon an anniversary date,and only by giving written notice to that effect,mailed by Certified Mail,at least ninety(90)days prior to such anniversary date,addressed to both the Principal 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 disturbed prior to the effective date of such cancellation, unless and until the Principal shall file a substitute Financial Warranty which: (1)assumes liability for all reclamation obligations which shall have arisen at any time while this Financial Warranty is in force; and(2)is accepted in writing by the Board. In the event of such cancellation, if the Financial Warranty is not fully released,the amount of the continuing Financial Warranty available for the reclamation of areas disturbed and unreclaimed 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 exceed the sum designated herein)and the Board shall concurrently identify such areas in writing,and notify the Surety and the Principal thereof. Thereafter,the obligation of the Surety shall be limited to reclamation of the areas so identified. The consideration for the Surety's execution of this agreement is the promise of the Principal to pay the premiums,but failure by the Principal to pay such premiums shall not invalidate or diminish the Surety's obligation hereunder. The Board may make demand upon the Surety for payment hereunder if the Board determines that reclamation which ought to have been performed by the Permittee, or its successors 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,if,upon completion of reclamation by the State,the amounts expended for reclamation shall be less than the amount received from the Surety,the excess shall be promptly refunded to the Surety. If demand is made upon the Surety for payment of an amount due to the Board hereunder,and if the Surety fails to make payment of such amount within ninety(90) days after the date of receipt of such demand, or if it should thereafter be determined,by agreement of the Surety or by fmal judgment of court,that the amount demanded was properly payable,the Surety 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 Wells Fargo Bank,N.A. for the period commencing at the end of such ninety-day period and ending on the date of actual payment.