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<br /> WHEREAS,in the application for the permit,the Operator has agreed with the Board to provide for reclamation
<br /> of the Affected Lands that are now,or may become, subject to the permit, as required by law.
<br /> WHEREAS,the Board has determined,in accordance with the Act,that the estimated costs of reclamation of the
<br /> Affected Lands are those amounts for the stated periods of time as set forth herein. Said amount may be amended from
<br /> time to time to reflect revised estimates of said costs of reclamation.
<br /> WHEREAS,the Operator,in accordance with the Act,has promised and hereby promises the Board that it will be
<br /> responsible for all the estimated costs of reclamation with regard to the Affected Lands.
<br /> WHEREAS,the Board has determined that the Financial Warranty by the Operator equals the estimated costs of
<br /> reclamation, as approved by the Board,with regard to the Affected Lands.
<br /> WHEREAS, as proof of its financial responsibility, the Operator has proceeded pursuant to
<br /> Section 34-32-117(3)(a)(III)of the Act and has caused the First Southwest Bank
<br /> Bank of , State of Colorado (the"Bank")to issue a
<br /> Certificate of Deposit,No. 350007899 , dated April 22 , 1994 ,payable to the Board in
<br /> the amount of Fifteen Thousand one * Dollars($15,001.00 *the
<br /> life of the mine or the period from , through ,
<br /> , and has delivered it to the State, to be held by the State as proof of the Operator's financial
<br /> responsibility under this Financial Warranty. The Bank is not a party to this agreement. Its obligations are set forth in its
<br /> Certificate of Deposit. Nothing in this Financial Warranty diminishes or qualifies the Bank's obligations under its
<br /> Certificate of Deposit.
<br /> 11_1,2.013 c0 ke,atce.D F,cO.l $2,5000.0, +u F i4o01.07 -*deo M40
<br /> NOW,THEREFORE,the Operator is held hereby firmly unto the State of Colorado in the amount of those sums
<br /> for those periods of time as set forth herein, until this Financial Warranty is amended or released in accordance with
<br /> applicable law.
<br /> The Board may, for good cause shown, increase or decrease the amount and duration of this Financial Warranty. The
<br /> Operator shall have sixty(60)days after the date of notice of any such adjustment to fulfill all new requirements.
<br /> The Operator shall notify the Board immediately of any event which may impair this Financial Warranty. If the Board
<br /> receives such notice,or otherwise has reason to believe that this Financial Warranty has been materially impaired,it may
<br /> convene a hearing in accordance with the Act for the purpose of determining whether impairment has occurred.
<br /> The obligation of the Bank shall continue until released in writing by the Board in accordance with applicable laws
<br /> specifying Financial Warranty release procedures.
<br /> In the event of forfeiture,the Board shall present a Board Order for payment of the Certificate of Deposit to the
<br /> Board. No other condition precedent need be fulfilled to entitle the Board to receive the amount of any such Certificate.
<br /> However, if, upon completion of such reclamation by the Board, the cost of reclamation shall be less than the amount
<br /> received from the Bank,the excess shall be promptly refunded to the Operator.
<br /> The obligation of the Operator shall continue until the Board has released this Financial Warranty, or has ordered it
<br /> forfeited in accordance with applicable provisions of the Act. It is understood that periods of years may necessarily be
<br /> required before determination can be made that reclamation of the Affected Lands has been satisfactorily completed. It is
<br /> also recognized that, as reclamation is accomplished, the amount of this Financial Warranty may be reduced with the
<br /> approval of the Board so that it reflects the then current estimated cost of the remaining reclamation of the Affected Lands.
<br /> No revision, extension, or renewal of the permit or of the time allowed to complete reclamation shall diminish the
<br /> Operator's obligation under this Financial Warranty.
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