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If the Board shall notify the Warrantor that the Operator is in default, and if the Board shall initiate any
<br />Financial Warranty forfeiture procedures required by law or regulation, the Warrantor may, in lieu of
<br />making payment to the Board of the amount due hereunder, cause the reclamation to be timely performed
<br />in accordance with all requirements of the Act and all applicable rules and regulations. In such event, when
<br />and if the reclamation has been timely performed to the satisfaction of the Board or Division, this Financial
<br />Warranty shall be released. If the reclamation shall not be so performed to the satisfaction of the Board or
<br />Division, this Financial Warranty shall remain in full force and effect.
<br />This Financial Warranty shall be subject to forfeiture whenever the Board determines that any one or more
<br />of the following circumstances exist:
<br />1. A Cease and Desist Order entered pursuant to Section 34-32-124 of the Act has been violated, and
<br />the corrective action proposed in such Order has not been completed, although ample time to have
<br />done so has elapsed; or
<br />2. The Operator is in default under its Performance Warranty, and such default has not been cured,
<br />although written notice and ample time to cure such default has been given; or
<br />3. The Operator and/or the Warrantor has failed to maintain its Financial Warranty in good standing
<br />as required by the Act; or
<br />4. The Warrantor no longer has the financial ability to carry out its obligations in accordance with the
<br />Act.
<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 Operator of lands outside of the
<br />permitted mining area shall alter or diminish the obligations of the Operator and/or Warrantor hereunder,
<br />which shall extend to the reclamation of all such lands disturbed.
<br />If this Financial Warranty applies to National Forest System lands, and if this Financial Warranty is
<br />accepted by the United States Forest Service ("U.S.F.S.") as the bond required under 36 C.F.R. 228.13, then
<br />the Operator, having requested that the Board and the U.S.F.S. accept this single Financial Warranty in lieu
<br />of the separate bonds which would otherwise be required by applicable law, hereby agrees that,
<br />notwithstanding any other provision hereof, or of law, this Financial Warranty shall remain in full force
<br />and effect until U.S.F.S. has advised the Board by written notice that the Operator's obligations to U.S.F.S.,
<br />for which this Warranty is executed, have been satisfied, and until the financial warranty has been released
<br />by the Board.
<br />If this Financial Warranty applies to lands under the jurisdiction of the State Board of Land Commissioners
<br />("Land Board"), and if this Financial Warranty, in whole or in part, is accepted by the Land Board as the
<br />bond required under its applicable Iaw and procedures, then the Operator, having requested that the State
<br />accept this Financial Warranty in lieu of the separate bonds which would otherwise be required by the
<br />Colorado Mined Land Reclamation Board or Division of Reclamation, Mining and Safety and by the Land
<br />Board, hereby agrees that, notwithstanding any other provision hereof, or of law, this Financial Warranty
<br />shall remain in full force and effect until the Board is notified in writing by the Land Board that the
<br />Operator's obligations to the Land Board, for which this Warranty is executed, have been satisfied, and until
<br />the financial warranty has been released by the Board.
<br />If all or any part of the Affected Lands are under the jurisdiction of the BLM, and if, at the request
<br />of the Operator on this Financial Warranty, the BLM has, pursuant to 43 C.F.R., 3809.570, accepted this
<br />Financial Warranty then, notwithstanding any other provision of this Financial Warranty, or of law, the
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