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-2- WHEREAS, as part of the application for such Permit, Principal has agreed with the State to complete a specified plan (the "Plan"3 for the reclamation, as required by law, of the area or areas of lands disturbed by reason of mining operations. The Plan may be amended from time to time with the approval of the State, acting through the Department of Natural Resources, Division of Minerals and Geology (the "Division"), or the Board. (The phrase "Board or Division" in this bond means that organ of State government which has the authority to act in the circumstances referred to, and recognizes that the Colorado Surface Coal Mining Reclamation Act (34-33-101 et seg.) confers distinctive and sometimes different responsibilities upon the Board and the Division.) NOW, THEREFORE, the conditions of this obligation are such that if the Principal shall, in conducting such mining and reclamation operations, faithfully perform the requirements of the Plan, as amended from time to time, and comply with the conditions of the Permit and all applicable laws and regulations of the State, and if the Board or the Division shall make a finding that the lands upon which such operations have been conducted have been satisfactorily reclaimed, then the Board or the Division shall, upon the receipt of a request for a bond release on such lands or a request for partia] release as to any portion thereof, and upon the completion of applicable procedures of law and regulation governing release of bond, release the Principal and the Bank to the extent that it determines such reclamation to have been accomplished. Additional Provisions (1) Irrevocable letters of credit shall be subject to the following conditions: (a) The letter may only be issued by a bank organized or authorized to do business in the U.S.; (b> The letter shall be irrevocable, except prospectively, and then only upon the anniversary date of the letter and upon the giving, to the Division and the permittee, of at least ninety days prior notice of the intention to revoke. Letters of credit which have been prospectively revoked shall be forfeited and collected by the Division if not replaced by other suitable bond at least 30 days prior to the expiration date of the letter. (c) The letter must be payable to the State of Colorado in part or in full upon demand and receipt from the Division of a notice of forfeiture issued in accordance with the law. (d) The Division will not accept a letter of credit in excess of 10 percent of the bank°s capital surplus account as shown on a balance sheet certified by a Certified Public Accountant.