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RULE 2 PERMITS <br />-2- <br />WHEREAS, as part of the application for such permit, Principal has <br />agreed with the State and the United States/OSMRE to complete a specified plan <br />("the Plan") for reclamation, as required by law, of the lands disturbed by <br />reason of such mining operations. The Plan may be amended from time to time <br />with the approval of the State, acting through the Department of Natural <br />Resources and, as appropriate, the Division of Minerals and Geology <br />("the Division") or the Mined Land Reclamation Board ("the Board") and the <br />United States of America, acting through the Department of the Interior, <br />Office of Surface Mining Reclamation and Enforcement ("the OSMRE"). <br />The phrase "Board or Division" in this bond means that organ of State <br />government which has the authority to act in the circumstance referred to, and <br />recognizes that the Mined Land Reclamation Act (34-32-101 et seq.) and the <br />Colorado Surface Coal Mining Reclamation Act (34-33-101 et—seq.) confer <br />distinctive and sometimes different responsibilities upon the Board and.the <br />Division. <br />NOW THEREFORE, the conditions of this obligation are such that, if the <br />above -bonded Principal shall, in conducting such mining and reclamation <br />operations,'faithfully perform the requirements of the Plan, as amended from <br />time to time,'and comply with the conditions of the Permit and with all <br />applicable laws and regulations'of the State, and if the Board or the Division <br />shall make a finding that the lands upon which such operations have been <br />conducted have been satisfactorily reclaimed, and if the OSMRE shall concur <br />with this finding, then the Board or the Division shall, upon receipt of a <br />request for bond release on such lands or a request for partial release as to <br />any portion thereof, and upon the completion of applicable procedures of law <br />and regulation governing release of bond, release the Principal and the surety <br />to the extent that it determines such reclamation to have been accomplished. <br />ADDITIONAL PROVISIONS <br />(1) The amount of this bond 1s based upon estimates as to the cost of <br />reclamation, and does not operate to liquidate, limit, enlarge, or restrict <br />the Principal's obligations to complete the reclamation plan and to comply in <br />all respects with the Permit and with applicable laws and regulations <br />governing reclamation, even though the actual cost thereof may substantially <br />exceed the amount of this bond. <br />(2) The surety shall not be liable under this bond for an amount <br />greater than the sum designated in the first paragraph hereof, unless <br />increased by a later amendment to this bond. This bond shall be reviewed by <br />the Board or the Division from time to time, and with the knowledge of the <br />OSMRE, the Board or the Division may require an Increase in the principal sum <br />of this bond (and a corresponding increase in the surety amount) to cover <br />increases in the estimated costs of reclamation, but no such increase shall <br />bind the surety unless and until it shall have consented thereto in writing by <br />the issuance of an additional surety bond or by an endorsement to this bond. <br />Rule 2 Permits 2-25 Revision Date: 6/23/08 <br />Revision No.: MR -91 <br />