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STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Department of Natural Resources 1313 Sherman SL, Room 215 Denver, Colorado 80203 phone (703)866-3567 PERFORMANCE WARRANTY Fnx:l3mla3z-elo6 Construction Material Ooeration Operator: Skoglund Excavating Inc Operation: Skoglund Pit Permit No: M-96-089 II~~~ DEPARTMEN'T' OF - NATURAI RESOURCE Roy Romer Governor lames S Lochhead Executive Dueaor m¢hael B Long Division Director KNOW ALL MEN BY THESE PRESENTS, THAT: WHEREAS, the Colorado Mined Land Reclamation Act, C.R.S., 34-32.5-101 et sec,. (the "Act"), as amended, provides that no permit may be issued under the Act until the Mined Land Reclamation Board (the "Board") receives a performance warranty (or warranties) that is a written promise to comply with all applicable requirements of the Act. WHEREAS, Skoglund Excavating Inc. (the "Permittee"), has applied for a permit to conduct a mining operation known as Skoglund Pit (the "Operation") on certain lands in Saguache County, Colorado. These lands aze 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 Permittee has agreed to be bound by all requirements of the Act and all applicable rules and regulations of the Board, as amended from time to time. WHEREAS, the Board has determined, in accordance with the Act, that the estimated costs of reclamation with regard to those affected lands in Saguache County which are now or may become subject to the permit are those amounts for the stated periods of time as set forth in the financial warranty, which may be amended from time to time to reflect revised estimates of said costs of reclamation. WHEREAS, the Permittee hereby gives the Board a performance warranty pursuant to Section 34-32.5-117 of the Act, and herein promises [he Board that it will comply with all applicable requirements of the Ac[, and the Rules and Regulations as tnay be amended, with regard to those Affected Lands. NOW, THEREFORE. the Permittee hereby promises the Board [hat it will comply with all applicable requirements of the Act and rules and regulations of the Board with respect to the Affected Lands. FURTHER, the Permittee hereby promises the Board that it will comply with all of the terms of the application for a permit, as amended and supplemented, as well as any conditions attached to the permit by the Board.