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to keep and perforrn its contracts." 3l C.F.R. § 223.3(a). The bottom line is that without a <br />certificate of authority, Frontier cannot do surety business with the federal government. <br />The Powderhorn mine site involves both private and federal land. The bond for this <br />site is payable to both the Board and to the Bureau of Land Management. Colorado <br />regulations require that Powderhom's performance bond be issued by a surety with a valid <br />and current certificate of authority from the Department of Treasury, as evidenced by the <br />surety being listed on the Treasury's Circular 570. 2 C.C.R. § 407-2, Rules <br />3.02.4(2)(b)(v)(A-C). The certificate of authority falls within the regulatory language <br />requiring a surety to hold "license" to do business. As it now stands, Powderhorn has lost its <br />license to do business with the federal government. <br />In addition, Frontier's bond does not provide the necessary financial assurance <br />required by Colorado's regulations. If the performance bond is not issued by a financially <br />sound surety, the Division has not received the "assurance" required by C.R.S. § 34-33-113. <br />Financial periodicals have reported substantial losses by Frontier in the last year. In addition <br />to the U.S. Department of Treasury revoking its license to do business with the federal <br />government, A.M. Best Co. downgraded Frontier's financial rating last March. The <br />Division's NOV is further supported by the suspension of Frontier's license by the Colorado <br />Commissioner of Insurance. <br />On March 14, 2001, the Colorado Commissioner of Insurance suspended Frontier's <br />license to transact insurance business in the state of Colorado. In his order, the <br />Commissioner states that Frontier's financial situation for the years 1999 and 2000 are below <br />6 <br />