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-3- <br />The Board may present for payment any Certificate of Deposit held hereunder and convert the same to <br />cash if the Board determines that reclamation which ought to have been performed by the Operator, or <br />its successors or assigns, remains unperformed. No other condition precedent need be fulfilled to entitle <br />the Boazd to receive the amount of any such Certificate. However, if, upon completion of such <br />reclamation by the Board, the cost of reclamation shall be less than the amount received from the Bank, <br />the excess shall be promptly refunded to the Operator. <br />The obligation of [he Operator shall continue until the Boazd has released this Financial Warranty, or <br />has ordered it forfeited in accordance with applicable provisions of the Act. It is understood that periods <br />of yeazs may necessarily be required before determination can be made that reclamation of the Affected <br />Lands has been satisfactorily completed. I[ is also recognized that, as reclamation is accomplished, the <br />amount of this Financial Warranty may be reduced with the approval of the Board so that it reflects the <br />then current estimated cost of the remaining reclamation of the Affected Lands. No revision, extension, <br />or renewal of the permit or of the time allowed to complete reclamation shall diminish the Operator's <br />obligation under this Financial Warranty. <br />In any single year during the life of the permit, the amount of the Financial Warranty shall not exceed <br />the estimated cost of fully reclaiming all lands to be affected in said yeaz, plus all lands affected in <br />previous permit yeazs and not yet fully reclaimed. Reclamation costs shall be computed with reference <br />to current reclamation costs. <br />The amount of this Financial Warranty is based upon estimates as to the cost of reclamation, and does <br />not operate to liquidate, limit, enlarge, or restrict the Operator's obligations to complete the reclamation, <br />even though the actual costs thereof may substantially exceed the amount of this Financial Warranty. <br />This Financial Warranty shall be subject to forfeiture whenever the Board determines that any one or <br />more of the following circumstances exist: <br />1. A Cease and Desist Order entered pursuant to Section 34-32-124 of [he Act has been <br />violated, and the corrective action proposed in such Order has not been completed, although ample time <br />to have done so has elapsed; or <br />2. The Operator is in default under its Performance Warranty, and such default has not <br />been cured, although written notice and ample time to cure such default has been given; or <br />3. The Operator has failed to maintain its Financial Warranty in good standing, as <br />required by the Act; or <br />4. The Operator no longer has the financial ability to carry out its obligations in <br />accordance with the Act. <br />The description of Lands herein is for convenience of reference only, and no error in such description, <br />nor any revision of the permitted mining area, nor the disturbance by the Operator of lands outside of <br />the permitted mining area shall alter or diminish the obligations of the Operator hereunder, which shall <br />extend to the reclamation of ali such lands disturbed. <br />