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STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Department of Natural Resources 1313 Sherman St., Room 215 DIVISION O F Denveq COlofad0 80203 1Vt 1 N E RA L $ Phone: (303) 866-3567 & FAX: (303) 832-8106 GEOLOGY PERFORMANCE WARRANTY MINIM GMSAFEOTY Bill Owens Permittee: Washington County Governor Greg E. Walther Enecu[ive Director Operation: V.F. Smith Pit #5 Rnnala w. cattany Acing Division Dnector Permit No: M-1981-309 KNOW ALL MEN BY THESE PRESENTS, THAT: WHEREAS, the Colorado Mined Land Reclamation Act, C.R.S. 34-32-1Ol,et sue. (the "Act"), as amended, and the Colorado Land Reclamation Act for the Extraction of Construction Materials, C.R.S. 34-32.5-101 et seg. (the "Act"), as amended, provides that no permit maybe issued under the Act until the Mined Land Reclamation Boazd (the "Boazd") receives a performance warranty (or warranties) that is a written promise to comply with all applicable requirements of the Act. WHEREAS, Washington County (the "Permittee"), has applied for a permit to conduct a mining operation known as V.F. Smith Pit #5 (the "Operation") on certain lands in Washington 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 Pem3ittee has agreed to be bound by all requirements of the Act and all applicable rules and regulations of the Boazd, as amended from time to time. WHEREAS, the Boazd has determined, in accordance with the Act, that the estimated costs of reclamation with regazd to those affected lands in Washington County which aze now or may become subject to the permit aze 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 34-3Z-117(2) or Section 34-32.5-117(2) of the Act, and herein promises the Board that it will comply with all applicable requirements of the Act with regazd to those Affected Lands. NOW, THEREFORE, the Permittee hereby promises the Boazd that it will comply with all applicable requirements of the Act and rules and regulations of the Boazd with respect to the Affected Lands.