2003-04-04_REVISION - M1995097 - Laserfiche WebLink

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HEREAS, the Board has determined that the Financial Warranty by the Qperat~ equals the estimated costs of reclamation, as approved by the Board, with regaid to the Affected Lands. WHEREAS, as proof of its financial responsibility, the Operator has proceeded pursuaat to Section 34-32-117(3)(a)(III) of the Act and has causedthe /-]l_~i nr E Bank of H-s ~ ~N , State of Cote man o (the "Bank") to issue a Certificate of Deposit, No. 16 5 Z Z dated ter YYl q+cci+ I Z 20o T~ payable to the Board in the amount of~oEMy news 716~.,,,e.SG+rr/~aeso ~ Dolats ($ ~ 888.00 1 for the life of the mine or the periodfrom /%7~ /Z' ,2003 through L?larr,,r~ / Z _ ao and has delivered it to the State, to be held by the State as proof of the Operator's financial tesponstbility under this Financial Warranty. The Bank is not a party to this agreement Its obligations are set forth in its Certificate of Deposit Nothing in this Financial Warranty d;min;che_a or qualifies the Bank's obligations under its Certificate of Deposit. NOW, THEREFORE, the Operate is held hereby famly unto the State of Colorado in the amount of those sums for those periods of time as set forth herein, unts7 this Financial Warranty is amended or released in accordance with applicable law The Board may, far 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 Board immediately of any event which may impair this Financial Warr,mty, If the Board 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 detemtining whether impairment has occtured. The obligation of the Bank shall continue until released ixt writing by the Board in accordance with applicable laws specifying Financial Warranty release procedures. The Board rosy present for payment a~ Certificate of Deposit held hereunder and convert the same to cash 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 amount of any such Certificate. However, if; upon completion of such reclamation by the Board, the cost of reclamation shall be less than the amount received from the Bank, the excess shall be promptly refunded to the Operator. The obligation of the Operator shall continue untl the Board has released this Financial Warranty, oar has ordered it forfeited in accordance with applicable provisions of the Act It is understood that periods of Yeats 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 may be reduced with the approval of the Board so that it reflects the thect current estimated cost of tbe remaining reclamation of the Affected Lands. No revision, extension, or renewal of the permit ar of the time allowed to complete reclamation shall diminish the Operator's obligation under this Financial Warranty. In any single year during the life of the permit, the amount of the Financial Warranty shall not excced the estimated cost of fully reclaiming all lands to be affected in said year, Plus all Lutds affected in previous permit years 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 estimates 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 excced the amount of this Financial Warranty.