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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Depanment o! Natural Resources <br />1313 Sherman 51., Room 215 <br />Denver, Colorado 80203 <br />Phone: (3031 866-3567 <br />FAX: (303) 832-8106 <br />~EC~!vc~ <br />SEP 0 $ 1997 <br />COAL RECLAMATION BOND <br />FOR USE WITH CORPORATE SURETY Division of hunel~i5 ty ~socloyy <br />FEDERAL MINES <br />Bond No. 108486 <br />Permit No. C-81-041 <br />KNOW ALL MEN BY THESE PRESENTS, That Powderhorn Coal Company <br />I~I~ <br />DEPARTMEI~7I.Of <br />NATURAL <br />RESOURCE <br />Roy Romer <br />Governor <br />lames 5. Lochhead <br />Exttuuve Director <br />Michael B. Long <br />Division Director <br />P.O. Box 1430, Palisade, CO 81526-1430 <br />of the County of Mesa in the State of Colorado <br />d5 Principal and Frontier Insurance Com any <br />of the County of Sullivan in the State of New Yor <br />a corporation organized and existing under the laws of the State of <br />New York and duly authorized to transact a bonding and <br />surety business in the State of Colorado, as surety, are held hereby and <br />firmly bound unto the State of Colorado ("the State") and the United <br />States/Office of Surface Mining Reclamation and Enforcement (OSMRE) in the sum <br />of Two Million Six Hundred Thousand and No/100 <br />DOLLARS ($ 2,600,000.00 ) for the <br />payment of which sum, well and truly to be made, we hereby bind ourselves and <br />our personal representatives, successors and assigns, jointly and severally, <br />firmly by these presents. Upon termination of the Cooperative Agreement <br />entered into between the State of Colorado and the Department of the Interior, <br />all bonds shall revert to being payable only to the United States (OSMRE) to <br />the extent that Federal lands are involved. <br />WHEREAS, the Principal has applied for a permit ("the Permit"> to <br />conduct mining and reclamation operations on certain lands in Mesa <br />County, Colorado which, for convenience of reference, are described as follows: <br />T. LOS., R. 98W•> 6th P.M.; Sections 20, 21, 22, 23, 26, 27, 28, 29, 34, and 35 <br />T. 115., R. 98W•, 6th P.M.; Sections 1, 2, 11, 12, 13 and 14 <br />T. 115., R. 97w•, 6th P. M.: Sections 6, 7 and 18 <br />T. 15., R. 2E., Ute P. M.; Section 1 <br />The mines are located approximately 3 miles northeast of Palisade, Colorado, <br />at the Interstate 70, Cameo Exit No. 46. The permit area is split east and <br />west by the Colorado River and I-70 and is encompassed within the above de- <br />scribed lands. <br />