2007-08-06_REVISION - M2004043 - Laserfiche WebLink

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-2- applicable rules and regulations of the Boazd, as amended from time to time. WHEREAS, in the application for the permit, the Operator has agreed with the Boazd to provide for reclamation of the Affected Lands that aze now, or may become, subject to the permit, as required by law. WHEREAS, the Operator and Pioneer General Insurance Comoanv (the "Warrantor"), a corporation organized and existing under the laws of the State of CO and duly authorized to transact a bonding and surety business in the State of Colorado are hereby and firmly bound unto the State in the sum of Forty Eight Thousand Dollars and 00/100 Dollar (S 48.000.00 1 for the life of mine or until such time as replacement is received, for the payment of which sum, well and truly made, we hereby bind ourselves and our personal representatives, successors aztd assigns, jointly and severally, family by these presents, WHEREAS, the Boazd has determined, in accordance with the Act, that the estimated costs of reclamation of the Affected Lands aze those amounts for the stated periods of time as set forth herein. Said amountmaybe amended flora time to time to reflect revised estimates of said costs ofreclamation. WHEREAS, the Operatorand the Warrantor, in accordance withthe Act, haspromised andherebypromises theBoazd that it will be responsible for all the estimated costs of reclamation with regazd to the Affected Lands. WHF.RFAS, the Boazd has detannined that this Financial Warranty by the Warrantor equals the estimated costs of reclamation, as approved by the Board, with regard to the Affected Lands. NOW, TAE1tEFOItE, the Operator and the Warrantor aro held hereby firnly unto the State of Colorado in the amount of those soma for those periods of time asset forth herein, until tlris Financial Warranty is amended or released in accordance with applicable law. The Board may, for good cause shown, inaease or decrease the amount and duration of this Financial Warranty. The Operatorshall have sixty (60) days after the date ofnotice ofanysuch adjustmentto increase the suretyamount, but ao such increase shall bind the Warrantor unless and until it shall have consented thereto in writingby the issuance of an additional Financial Warranty ar by an endorsement to this Financial Warranty. The Operator and the Warrantor steal! notify the Hoard immediately of any event which mayimpair this Financial Warranty. If tha Boazd receives such notice, of otherwise has reason to believe that this Financial Wmtaaty has been metetially impaired, it may convene a hearing in accordance with the Act for the purpose of determining whcthu impairmdrt has occurred. The obligation of the Operator and the Warrantor stroll continue until the Board has released this Finanaal Warranty or has ordered it forfeited in accordance with applicable provisions of the Act It is understood that periods of years may necessarily be required before determination can be made that reclamation of the Affected Lands has been satisfactorily completed. Iris a]sorecognized that, as mclatnatioa is accomplished, dreamountofthisFinarrcial Warrantymaybereduced with the approval of rho Hoazd so that it reflects the ttrerr curent estimated cost ofthe remaining reclamation of the Affected Lands. No revision, exfeasion, or renewal of the permit, or of the time allowed to complete reclamation, shall dimatish the Operator's orWarratttot'sobligationuaderthisFinancialWarranty. NotnisrepresentationbytheOperatorwhichmayltave induced the Warrantor to execute thisFinancial Warrantyshall>x anydefense to demand bythe Stateunderthis agreement In any single yeaz during the life of the permit, the amount of the Financial Warranty shall not exceed the estirrurted cost of fully reclaiming all lands to be affected in said year, plus all lands affected in previous permit years and not yet fully reclaimed Reclamation costs shall be computed wIdt reference to current reclamation costs.