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• DIVISION OF MINERALS AND GEOLOGY Depanmenl of Natural Resources I31 7 Sherman 51., Room ? 15 Denver, Colorado eOZOI Phone: 1}03) Hbb~3567 FA%. 1.703) b3?-(il Ob STATE ~ COLORADO PERFORMANCE WARRANTY Construction Material Operation I~~ DEPARTMENT OF NATURAL RESOURCES Operator: P.C. Management, LLC Roy Romer Gm error lame, 5. Lra:hhearl Operation: Flag Creek Mine becvlrve Director Michael B Lon4 Permit No: M-97-098 Drvuinn 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, P.C. Management, LLC (the "Permittee"), has applied for a permit to conduct a mining operation known as Flag Creek Mine (the "Operation") on certain lands in Rio Blanco 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 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 Rio Blanco 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 34-32.5-1 l7 of the Act, and herein promises the Board that it will comply with all applicable requirements of the Act, and the Rules and Regulations as may be amended, with regard to those Affected Lands. NOW, THEREFORE, the Permittee hereby promises the Board that it will comply with all applicable requirements of the Act and rules and regulations of [he Board with respect to the Affected Lands. FURTHER, the Permittee hereby promises the Board that it will comply with all of [he terms of the application for a permit, as amended and supplemented, as well as any conditions attached [o the permit by the Board.