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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />COLORADO <br />1313 Sherman St.. RDom 215 D I V I S I ON o f <br />Denver. Colorado 80203 RECLAMATION <br />Phone (303) 866-3567 MINING <br />FAX: (303) 832-8106 —&— <br />SAFETY <br />PERFORMANCE WARRANTY <br />Operator: Caerus Piceance LLC <br />Operation: West Fork Pit <br />Permit Number: M-2005.069 <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 Rock Act') and <br />associated Rules (2 CC. R. 407-1) ("Hard Rock Rules') and the Land Reclamation Act for lite <br />E_rtraction of Construction Materials (C.R.S. § 34-32.5-101 et, sen.) ("Construction Materials <br />Act') and associated Rttles (2 C.C.R. 407-4) ("Construction Materials Rules'). Any alteration <br />or modification of this form, without approval by lite Board shall result in the performance <br />warranty being invalid and result in the voiding of any permit issued in conjunction rvith suclt <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.S-123, CR.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 seg. (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 5eMc . (the "Construction Materials Act"), as <br />amended (collectively the "Acts"), provide that no permit may 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, Caerus Piceance LLC (the "Operator"), has applied for a <br />permit to conduct a mining operation known as west Fork Pit <br />(the "Operation") on certain lands in Garfield 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 <br />Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and <br />Inactive Mines <br />