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II. <br />Incapacity of a surety is established by <br />suspension of its license to transact business. <br />The Division has responded to Powderhorn's arguments asserted under this <br />section in the sections III, IV and V of the Division's Response to Powderhom's <br />Petition concerning the December NOV. However, the Division wishes to reiterate <br />the following points. <br />First, under Colorado regulations, incapacity of a surety is established by <br />bankruptcy, insolvency OR suspension or revocation of its license. 2 C.C.R. 407-2, <br />rule 3.02.4(2)(b)(v)(C). Powderhom continues to erroneously assert that the only <br />ground to fmd incapacity is insolvency, i.e., the lack of ability to meet one's financial <br />obligations. Powderhor conveniently overlooks the other grounds to find incapacity <br />of a surety. Suspension of a license constitutes incapacity under the regulation. <br />Second, Powderhom also continues to assert that despite Frontier's loss of its <br />licenses to transact business and its failing financial health, Powderhom need not <br />replace the bond or even have any bond on this site at this point in time. Powderhom <br />argues that only incapacity of a surety along with continuance of a mining operation <br />constitutes a violation. Apparently, Powderhor thinks that an operator can disturb <br />land for numerous years by extracting coal, then lose its bond, and not have to post <br />