2007-09-05_REVISION - M1984041 (2)

Home Browse Search

Bond No. 6503920 3- In any single year during the 1 ife of the permit, [he amount of the Financial Warranty shall no[ 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 curtent reclamation costs. The amount of this Financial Warranty is based upon estimates as to the cost of reclamation, and does not operate to liquidate, limit, cnlazge or restrict the Operator's obligations to complete reclamation and to comply in all respects with the pemdt and with applicable laws and regulations governing reclamation, even though the actual cost thereofmay substantially exceed [he amount of this Financial Warranty. The Warrantor shall not be liable under this Financial Warranty for an amount Beater than the sum designated herein, unless increased by a later amendment to this Financial Warranty. This Financial Warranty shall be reviewed by the Board from time to time, and the Board may require an increase in the principal sum of[his Financial Warranty (and a corresponding increase in the surety amount) to cover increases in the estimated costs of reclamation, but no such increase shall bind the Warrantor unless and anti I it shall have consented thereto in writing by the issuance of an additional Financial Wartanty or by an endorsement to this Fittancia! Warranty. The Warrantor reserves the right to cancel this Financial Warranty, effective only upon an anniversary date, and only by giving written notice to that 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 Board at the address herein stated In the event ofsuch cancellation, this Financial Warranty shall nevertheless remain in full farce and effect as respects the reclamation of all areas disturbed prior to the effective date of such cancellation, unless and until the Operator shall file a substitute Financial Wattanty which; (1) assumes liability for all reclamation obligations which shall have arisen at any time while this Financial Warranty is in force; and (2) is accepted in writing by [he Board. In the event ofsuch cancellation, if the Financial Warranty is not fully released, the amount of the continuing Financial Warranty available for the reclamation of areas disturbed and unreclaimed at the date of cancellation shall be fixed by the Board at the amount it determines necessary to complete such reclamation (which amount may not exceed the sum designated herein) and the Board shall concurrently identify such areas in writing, and notify the Warrantor and the pperetor thcreoL Thereafter, the obligation of the Warrantor shall be limited to reclamation of the areas so identified. The consideration for the Warrantor's execution of this agreement is the promise of the Operator to pay the premiums, but failure by the Operator to pay such premiums shall not invalidate or diminish the Warrantor's obligation hereunder. The Board may make demand upon the Warrantor for payment hereunder if the Board determines that reclamation which ought to have been performed by the Operator, or its successors or assigns, remains unperformed, and ifFinancial Warranty forfeiture procedures requited by law have been initiated. IVo other condition precedent need be fulfilled to entitle the State to receive [he amount so demanded. However, if, upon compaction ofreclarnafion by the State, the amounts expended for reclamaton shall be less than the amount received from the Warrantor, the excess shall be promptly refunded to the Warrantor. If demand is made upon the Warrantor for payment of an amount due to the Board hereunder, and if the Warrantor fails to make payment of such amount within ninety (90) days after the date ofreceipt of such demand, or if it should thereafter be determined, by agreement of the Warrantor or by final judgment of court, that the arrrount demanded was property payable, the Warrantor agrees to pay to the Board, in addition to the amount demanded, interest at the prime rate in effect from time to time at The United Bank of Denver for the period commencing at the end of such ninetyday period and ending on the date of actual payment.