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DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone (303) 866-3567 <br />FAX (303) 832-8106 <br />STATE OF COLORADO <br />PERFORMANCE WARRANTY <br />Operator: The Walsenburg Sand and Gravel Company <br />Operation: WSG-Sand Arroyo Pit #2 <br />Permit Number: M -2017 - <br />COLORADO <br />DIVI SION Of <br />RECLAMATION <br />MINING <br />- &— <br />SAFETY <br />This form has been approved by the Mined Land Reclamation Board ("Board') pursuant to <br />the Mined Land Reclamation Act (C.R.S. § 34-32-101 et, sea,) ("Hard Rack Act') and <br />associated Rules (2 CCR. 407-1) ("Hard Rock Rules'J and the Land Reclamation Act for tile - <br />Extraction of Construction Materials (C.R.S. § 34-32.5-101 et. sea.) ("Construction Materials <br />Act') and associated Rules (2 C.C.R. 407-4) ("Construction Materials Rules'). Any alteration <br />or modification of this form, without approval by the Board shall result in lite performance <br />warranty being invalid and result in Ilse voiding of any permit issued in conjunction with such <br />invalid performance warranty and subject the operator to cease and desist orders and civil <br />penalties for operating without a permit pursuant to sections 34-32-123, C.R.S of the Hard <br />Rock Act and 34-32.5-123, C.R.S. of Construction Materials Act. <br />KNOW ALL MEN BY THESE PRESENTS, THAT: <br />WHEREAS, the Colorado Mined Land Reclamation Act, C.R.S. § 34-32-101 et seta. (the. <br />"Hardrock Act"), as amended, and the Colorado Land Reclamation Act for the Extraction of <br />Construction Materials, C.R.S. § 34-32.5-101 et seg. (the. "Construction Materials Act"), as <br />amended (collectively the "Acts"), provide that no permit ay be issued until the Mined Land <br />Reclamation Board (the "Board") receives a performance warranty consisting of the Operator's <br />written promise to comply with the requirements of the Hardrock or Construction Materials Act, <br />whichever is applicable. <br />WHEREAS, The Walsenburg Sand and Gravel Company (the "Operator"), has applied for a <br />Permit to conduct a mining operation known as WSG-Sand Arroyo Pit #2 <br />(the "Operation") on certain lands in Huerfano County, Colorado. These <br />lands are described in the permit application, as amended and supplemented, and are referred to <br />herein as the "Affected Lands." <br />WHEREAS, in its application for the permit, the Operator has agreed to be bound by all <br />requirements of the Hardrock or Construction Materials Act and all applicable rules and <br />regulations of the Board, as amended from time to time. <br />Office of OMce of <br />Mined Land Reclamation Denver • Grand Junction - Durango Active and <br />Inactive Mines <br />