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STATE OF COLORADO DIVISION OF RECLAMATION,MINING AND SAFETY Department of Natural Resources 1313 Sherman St.,Room 215 A O i S 1 o N od Denver,Colorado 80203 RECLAMATION Phone:(303)866-3567 MINING FAX:(303)832-8106 —&- 5AF ETY PERFORMANCE WARRANTY Operator: Caerus Cross Timbers LLC Operation: Colony Shale Oil Project Permit Number: M-1980-047 This form has been approved by the Mined Land Reclamation Board ("Board")pursuant to the Mined Land Reclamation Act (C.R.S. § 34-32-101 et. sea.) ("Hard Rnck Act") and associated Rules(2 CC.R. 407-1) ("Hard Rock Rules') and lire Land Reclamation Act far the Extraction of Construction Materials (C.R.S. §34-32.5-101 et. sea.) ("Construction Materials Act') and associated Rules(2 C.C.R. 407-4) ("Construction Materials Rules'). Any alteration or modification of this form, without approval by the Board shall result in the performance warranty being invalid and result in the voiding of any permit issued in conjunction with such invalid pe►formance warranty and subject the operator to cease and desist orders and civil penalties for operating without a permit pursuant to sections 34-32-123, C.R.S. of the Hard Rock Act and 34-32.5-123, C.R.S of Construction Materials Act. KNOW ALL MEN BY THESE PRESENTS,THAT: WHEREAS, the Colorado Mined Land Reclamation Act. C.R.S. } 34-32-101 et sec. (the "Hardrock Act"), as amended, and the Colorado Land Reclamation Act for the Extraction of Construction Materials, C.R.S. § 34-32.5-101 et seq. (the "Construction Materials Act"), as amended (collectively the "Acts"), provide that no permit may be issued until the Mined Land Reclamation Board (the "Board") receives a performance warranty consisting of the Operator's written promise to comply with the requirements of the Hardrock or Construction Materials Act, whichever is applicable. WHEREAS, Caerus Cross Timbers LLC (the "Operator"), has applied for a permit to conduct a mining operation known as Colony Shale oil Project (the"Operation") on certain lands in Garfield County, Colorado. These lands are described in the permit application, as amended and supplemented, and are referred to herein as the"Affected Lands." WHEREAS, in its application for the permit, the Operator has agreed to be bound by all requirements of the Hardrock or Construction Materials Act and all applicable rules and regulations of the Board, as amended from time to time. Once or office or Mined Land Reclamation Denver-Grand Junction-Durango Active and Inactive Mines