Laserfiche WebLink
Affected Lands has been satisfactorily completed. It is also recognized that, as reclamation is <br /> accomplished, the amount of this Financial Warranty may be reduced with the approval of the Board so <br /> that it reflects the then current estimated cost of the remaining reclamation of the Affected Lands. No <br /> revision,extension,or renewal of the permit,or of the time allowed to complete reclamation,shall diminish <br /> the Operator's or Warrantor's obligation under this Financial Warranty. No misrepresentation by the <br /> Operator which may have induced the Warrantor to execute this Financial Warranty shall be any defense <br /> to demand by the State or the Colorado State Director,BLM under this agreement. <br /> In any single year during the Iife of the permit, the amount of the Financial Warranty shall not exceed the <br /> estimated cost of fully reclaiming all lands to be affected in said year, plus all lands affected in previous <br /> permit years and not yet fully reclaimed. Reclamation costs shall be computed with reference to current <br /> reclamation costs. <br /> The amount of this Financial Warranty is based upon estimates as to the cost of reclamation, and does not <br /> operate to liquidate, limit, enlarge or restrict the Operator's obligations to complete reclamation and to <br /> comply in all respects with the permit and with applicable laws and regulations governing reclamation, <br /> even though the actual cost thereof may substantially exceed the amount of this Financial Warranty. <br /> The Warrantor shall not be liable under this Financial Warranty for an amount greater than the sum <br /> designated herein, unless increased by a later amendment to this Financial Warranty. This Financial <br /> Warranty shall be reviewed by the Board from time to time, and the Board may require an increase in the <br /> principal sum of this Financial Warranty (and a corresponding increase in the surety amount) to cover <br /> increases in the estimated costs of reclamation, but no such increase shall bind the Warrantor unless and <br /> until it shall have consented thereto in writing by the issuance of an additional Financial Warranty or by an <br /> endorsement to this Financial Warranty. <br /> The Warrantor reserves the right to cancel this Financial Warranty,effective only upon an anniversary date, <br /> and only by giving written notice to that effect, mailed by Certified Mail, at least ninety(90)days prior to <br /> such anniversary date, addressed to both the Operator at its address herein stated, and to the Board at the <br /> address herein stated. In the event of such cancellation,this Financial Warranty shall nevertheless remain <br /> in full force and effect as respects the reclamation of all areas disturbed prior to the effective date of such <br /> cancellation, unless and until the Operator shall file a substitute Financial Warranty which: (1) assumes <br /> liability for all reclamation obligations which shall have arisen at any time while this Financial Warranty is <br /> in force; and(2)is accepted in writing by the Board. <br /> In the event of such cancellation, if the Financial Warranty is not fully released, the amount of the <br /> continuing Financial Warranty available for the reclamation of areas disturbed and unreclaimed at the date <br /> of cancellation shall be fixed by the Board at the amount it determines necessary to complete such <br /> reclamation (which amount may not exceed the sum designated herein) and the Board shall concurrently <br /> identify such areas in writing,and notify the Warrantor and the Operator thereof. Thereafter,the obligation <br /> of the Warrantor shall be limited to reclamation of the areas so identified. <br /> The consideration for the Warrantor's execution of this agreement is the promise of the Operator to pay the <br /> premiums,but failure by the Operator to pay such premiums shall not invalidate or diminish the Warrantor's <br /> obligation hereunder. <br /> The Board or the Colorado State Director, BLM may make demand upon the Warrantor for payment <br /> hereunder if the Board or the Colorado State Director, BLM determines that reclamation which ought to <br /> have been performed by the Operator, or its successors or assigns, remains unperformed, and if Financial <br /> Warranty forfeiture procedures required by law have been initiated. No other condition precedent need be <br /> fulfilled to entitle the State or the Colorado State Director, BLM to receive the amount so demanded. <br /> Page 3 of 6 <br />