2006-12-18_REVISION - M1978314 (3)

Home Browse Search

11/29/2006 15:59 IFAX FAX@EBERLS.COM Ftlj004/032 - 2 - ofthe Act and all applicable rules and regulations of the Board, as amended from time to time. WHEREAS, in its application for the permit, the Operator has agreed with the Board to provide for reclamation of the Afl'ecled Lauds that are now, or may become, subject to the permit, as required bylaw. WHEREAS, the Board has determined, in accordance with the Act, that the estimated ousts of reclamation of the Affected Lands arc those amounts for the stated periods of time as set forth herein. Said amount may be amended from time to time; to retlect revised estimates of said costs of reclamation. WEdEREAS, The gper.uor, in accordance with the Act, has promised and hereby promises [he Hoard that it will be responsible for all of the estimated costs of reclamation with regard to the Affected Lands. WHEREAS, the Hoard has determined that the financial Warr~rty by the Operator equals the estimated costs of reclamation, as approved by the Hoard, with regard to the Affected Lands. WHEREAS, as proof of its financial responsibility, the Operator has proceeded pursuant to Section 3432-117(3)(a)(Ii) ofthe.Act and has caused the Community Banks Bank of Col arado , State of Colorado (ttie "Bank") to issue its Irrevocable Letter of Credit No. 2170201 dated March 7 :2006 payable to theBoani in the amount of three llundred I3lrteteen 'Thaw Dollars ($ 319 , 000 ) for the period from March 7 . 2Q06 ,through Jung 29 .zoo? and hasdeliveredittotheBoard to beheld by the Board a> proof of the Operator's financial responsibility under this financial watmnty. The Bank is no[ a party to this agreemeuti its obligations are rat forth in its Letter of Credit, Nothing in this fittancial Warranty diminishes or qualifies the Bank's obligation under its Letter of Credit. NO W THEREFORE, the Operator is held hereby firmly unto the State of Colorado in the amount of those sums for those periods o1'timc as set forth herein, until this financial warranty is amended or released in accordance with applicabl~s law. The Hoard may, for good cause shown, increase or decrease the amount and duration of this financial warranty. TheOperatorshallhaveaixty(60)daysafierthedateofnoticeofanysuchadjuslrnerrttofulfillallnew requirements. The Operator shall notify the Hoard immediately of any event which may impair Ibis financial warrarry Additionally, the Watiatttor reserves the right to cancel this Financial Warranty, effective only upon an anniversary date, and only by giving written notice to the effect, mail~l by Certified Mail, at least ninety (90) days prior to such anniversary date, addressed to both the operator at its address herein stated, and to the Board or Division at the address hct~ein stated. If the Board receives such notice, or otherwise has reason to believe that this Financial Warrantyhas been materially impaired, it may convene a hearing in accordance with the Act for the purpose of determining whether impairment has occurred. No misrept~esentation by the Operator which may have induced the Bank to deliver its Letter of Credit shall be any defense to any draft by the State under such Letter of Credit.