2007-09-18_REVISION - M2000030 (5)

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-3- No misrepresentation 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. The Board may present drafts upon the Bank for payment under the Letter of Credit 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 amounts of such drafts. However, if, upon completion of such reclamation by the Boazd, the amounts expended for reclamation shall be less than the amount received from the Bank, the excess shall be promptly refunded to the Operator. If or to the extent that the Bank shall cancel its Letter of Credit and such assurance shall not concurrently be reduced to a cash deposit as substitute assurance, the Operator agrees that it will forthwith provide substitute assurance, in form and substance approved by the Boazd, equal to the amount of the Letter of Credit which has been so canceled and not reduced to a cash deposit. With the prior consent of the Boazd, which consent shall not be unreasonably withheld, the Operator may from time to time change the Bank whose Letter of Credit is held by the State as assurance or alter the form of assurance of financial responsibility held by the State for the faithful perfom~artce by the Operator of its obligations hereunder; provided that at all tithes there shall be in existence and delivered to the Boazd such assurance or other evidence of financial responsibility as shall be required by applicable laws and regulations of the State of Colorado and as shall be, in form and substance, approved by the Board or the Division . The obligation of the Operator shall continue until the Boazd has released this Financial Warranty or has ordered it forfeited in accordance with applicable provisions of the Act. It is understood that periods ofyears may necessarily be required before 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 maybe reduced with the approval of the Boazd so that it reflects the then current estimated cost of the remaining reclatation of the Affected Lands. No revision, extension, or renewal of the permit or of the time allowed to complete reclamation shall diminish the Operator's obligation under this Financial Warranty. In any single yeaz 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 yeaz, plus all lands affected in previous permit yeazs 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 estitnates as to the cost of reclamation, and does not operate to liquidate, limit, enlarge or restrict the Operator's obligations to complete the reclamation, even though the actual costs thereof may substantially exceed the amount of this Financial Warranty.