2007-10-18_REVISION - M1982020 (3)

Home Browse Search

x e -2- WHEREAS, the Operator, in accordance with the Act, has promised and hereby promises the Board that it will be responsible for ali the estimated costs of reclamation with regard to the Affected Lands. WHEREAS, the Board has determined Operator equals the estimated costs of with regard to the Affected Lands. that the Financial Warranty by the reclamation, as approved by the Board, WHEREAS, as proof of its financial responsibility, the Operator has proceeded pursuant to Section 34-32-117(3)(a)(III> of the Act and has caused the~r~NN/So+~-- ~ANI'C ~TIZ~+-s'(- Bank of Gotin~iS-oN _, State of Coo ~ a?rod o (the "Bank") to issue a Certificate of Deposit, No. 12707 dated October 18, 1993 payable to the Board in the amount Of Four Tlrnvsacd One Hundredand no/100 DOlldrs ($ 4,100.00 ) 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 proof of the Operator's financial responsibility under this Financial Warranty. The Bank is not a party to this agreement. Its obligations are set forth in its Certificate of Deposit. Nothing in this Financial Warranty diminishes or qualifies the Bank's obligations under its Certificate of Deposit. NOW, THEREFORE, the Operator is held hereby firmly unto the State of Colorado in the amount of those sums for those periods of time as set forth herein, until 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 of this Financial Warranty. The Operator shall have sixty (60) days after the date of notice of any such adjustment to fulfill aii new requirements. The Operator shall notify the Board immediately of any event which may impair this Financial Warranty. If the Board receives such notice, or otherwise has reason to believe that this Financial Warranty has been materially impaired, it may convene a 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 laws specifying financial Warranty release procedures. The Board may present for payment any Certificate of Deposit held hereunder and Convert the same to Cash if the Board determines that reclamation which ought to have been performed by the Operator, or its successors or assigns, remains unperformed. No other condition precedent need be fulfilled to entitle the Board to receive the amount of any such Certificate. However, if upon completion of such reclamation by the Board, the cost of reclamation shall be less than the amount received from the Bank, the excess shall be promptly refunded to the Operator.