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STATE OF COLORADO <br /> DIVISION OF RECLAMATION,MINING AND SAFETY <br /> Department of Natural Resources <br /> 1313 Sherman St.,Room 215 <br /> Denver,Colorado 80203 DIVISION O F <br /> Phone:(303)866-3567 RECLAMATION <br /> FAX:(303)832.8106 MINI NG <br /> —SAFETY <br /> FINANCIAL WARRANTY <br /> CHECK FOR DEPOSIT IN STATE TREASURY <br /> Operator Kiana Holdings II,LLC <br /> Operation Cotton Creek Pit <br /> Permit No. M-2013-054 Check No. <br /> This form has been approved by the Mined Land Reclamation Board pursuant to sections 34-32-117,C.R.S.,of <br /> the Mined Land Reclamation Act and 34-32.5-117, C.R.S., of the Colorado Land Reclamation Act for the <br /> Extraction of Construction Materials. Any alteration or modification of this form, without approval by the <br /> Board shall result in the financial warranty being invalid and result in the voiding of any permit issued in <br /> conjunction with such invalid financial 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 Mined Land <br /> Reclamation Act and 34-32.5-123, C.R.S., of the Colorado Land Reclamation Act for the Extraction of <br /> Construction Materials. <br /> KNOW ALL MEN BY THESE PRESENTS,THAT: <br /> WHEREAS,the Colorado Mined Land Reclamation Act,C.R.S. 1973,34-32-101 et sec.(the"Act"),as amended, <br /> provides that no permit may be issued under the Act until the Mined Land Reclamation Board (the 'Board") receives a <br /> financial warranty(or warranties)as described in the Act. <br /> WHEREAS, Kiana Holdings 11,LLC the"Operator),a <br /> Colorado corporation,has applied for a permit to conduct a mining operation known as <br /> Cotton Creek Pit (the"Operation"),on certain lands in Saguache C(Unty, <br /> Colorado These are described in the permit application, as amended and supplemented, and are referred to herein as the <br /> "Affected Lands". <br /> WHEREAS,in the application for the permit the Operator has agreed to be bound by all requirements of the Act and <br /> all applicable rules and regulations of the Board,as amended from time to time. <br /> WHEREAS,in the application for the permit,the Operator has agreed with the Board to provide for reclamation of <br /> the Affected Lands,that are now or may become subject to the permit,as required by law. <br /> Office of Office of <br /> Mined Land Reclamation Denver - Grand)unction - Durango Active and Inactive Mines <br />