2007-05-23_REVISION - M1978222UG

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~ 2 WHEREAS, the Board has determined that the Financial Warranty by the Operator equals the estimated costs of reclamation, as approved by the Board, with regard to the Affected Lands. WHEREAS, as proof of its financial responsibility, the Operator has proceeded pursuant to Section 34-32-117(3)(a (IIT) of the Act and has caused the!'ver4 /ua ~-(/~Q_ Bank of State of ~~~b r6fQ h (the "Bank") to ' sue a Certificate of Deposit, No. ~a osaloiT' 4e~0f99 . dated ~'Vlm,.a6i !~ ~S .payable to the Board is the amount of L1ro~ J/cur~{w~~luxr~Nlars ($~, ~ ~. DO ) for the life of the mine or the period from through .and has delivered it to the State, to be held by the State as proofofthe Operator's financial responsibility under this Financial Warrant}: The Bank is not a party to this agrcemenk Its obligations are set forth in its Certificate of Deposik Nothing in this Financial.Warranty diminishes or qualifies the Bank's obligations under its Certificate of Deposik NOW, THEREFORE, the Operator is held hereby firmly unto the State of Colorado inthe amoamt ofdrose sums for those periods of time as set forth herein, tmtil this Financial Warranty is amended or released in accordance with applicable law The Board may, for good cause shown, increase or decrease the amount and duration ofthis Financial Warranty. The Operator sha11 have sixty (60) days after the date of notice of any such adjustment to fulfill all new requirements. The Operator shall notify the Board immediately of any event which may impair this Financial Warranty. h° the Board receives such notice, or otherwise has reason to believe that this Financial Warramy has been materially impaired, it may convene 8 hearing in accordance with the Act for the purpose of determining whether impairment has occurred. The obligation of the Bank shall continue until released in writing by the Board in accordance with applicable Ltws specifying Financial Warranty release procedures. The Board may present for payment any Certificate of Deposit held hereunder anti convert the same to cash if the Board detemrines that reclamation which ought to have been performed by the Operatoy or its successors or assigns, remains unperformed. No other condition precedem need be fulfilled to entitle the Board to receivethe amount of a~ such Certificate. However, if, upon completion of such reclamation by the Board, the cost ofieclamafiaa shall be less thanthe amourrtreceived fromthe Bank, the excess shall be promptly refunded to the Operator. The obligation of the Operator shall continue u~il the Board has released this Financial Warranty, or has ordered it forfeited in accordance with appficableprovisionsoftheAck It is understoodthatperiodsofyearsmaynecessarilyberegtnredbefare determination can be made that reclamation of the Affected Lands has been satisfactorily completed. It is also recognized that, as reclamation is accomplished, the amount of this Financial Warranty may be reduced with the approval ofthe Board so that it reflects the then current estimated cost of the rema+n~ reclamation of the Affected Lands. No revision, extension,or renewal of the pemrit or of the time allowed to complete reclamation shall diminish the Operator's obligation under this Financial Warranty. In any single year during the life of the permit, the amount of the Financial Warranty shall not exceed the estimated 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 with reference to current reclamation costs. The amount of this Financial Warranty is based upon estimates as to the cost of reclamation, and does nct operate to liquidate, limit, enlarge, or restrict the Operator's obligations to complete the reclamation, even though the actual costs thercef may substantially exceed the amount of this Financial Warranty.