2007-09-18_REVISION - M2000030 (5)

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-2- WHEREAS, ut its application for the permit, the Operator has agreed with the Board to provide for reclamation of the Affected Lands that are now, or may become, subject to the permit, as required by law. WHEREAS, the Boazd has determined, in accordance with the Act, that the estimated costs of rec]amation of the Affected Lands are those amounts for the stated periods of time as set forth herein. Said amount may be amended from time to time to reflect revised estimates of said costs of reclamation. WHEREAS, The Operator, in accordance with the Act, has promised and hereby promises the Board that it will be responsible for all of the estimated costs of reclamation with regazd to the Affected Lands. WHEREAS, the Boazd 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 3432-117(3)(a)(I)] of the Act and has caused the PINE RIVER vALLEY Bank of BA~'IEL,D ,State of ~~~ (the "Bank") to issue its Irrevocable Letter of Credit No. 065 dated JUNE 29, 2000 payable to the Board in the amount OfrHIRTY NINE THOUSAND 453.ODO11arS ($ 39,453.00 ) for the period from J~`1E 29, 2000 ,through JUNE 28, 2001 , and has delivered it to the Board to beheld by the Board as proof of the Operator's financial responstbtlity under this financial warranty. The Bank is not a party to this agreement; its obligations aze set forth in its Letter of Credit. Nothing in this Finartcial Warranty diminishes or qualifies the Bank's obligation under its Letter of Credit. NOW THEREFORE, the Operator is held hereby firmly tmto the State of Colorado in the amount of those sum's for those periods of time as set forth herein, until this financial warranty is amended or released in accordance with applicable law. The Boazd 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 all new requirements. The Operator shall notify the Boazd immediately of any event which may impair this financial warranty. Additionally, the Warrantor reserves the right to cancel this Financial Warranty, effective only upon an anniversary date, and only by giving written notice to the effect, mailed 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 Boazd or Division at the address herein stated. If the Boazd 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.