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COLORADO DIVISION Of MINERALS ANp GEOLOGY Depertme,M of N,Nral Re,ole¢es Auc o 3 coos 1313 Shaman St, Room 215 Deena. Cobndo an203 Pllonc p03) 8663567 FA7L• D03) 832.8106 girUlan of Minerals and Geology PERFORMANCE WARRANTY Operator: Kagan & Son, LLC Operations Kagan & Son South Pit PenmtNo: M-1994- VISION O F IN RALS EOLOGY Bln o"ee G"mwr Rases Gap Fantle Oneaa Re1saN W. Corry Divisim Din,cmr Nseml Roa"ae 7name Thiaform has been approved b3'theltfrnedLand Reclmrwdon Boardpwnxant to sections34-32-I17, CRS, of the 11!rrred Land ReclantatioriAct and 3~3Z.5-117, CRS, oftheColoradoland Rerlama~ionAd jortltt F.xbaclion of Construction Materials. Any ahergNon or mor&fuation of this john, without approval by the Bomd shoA rrrxlt in the financial warr+Rnty being invalid and rrsuk in the rooi~ng of any permit iswied in conjilnction with such involidfrnancial warranty and snbjeet theaper~orto cease end desist order andcivrT ptnahyrs j~ oP~a6S w;tha+t a permit pursuant to sections 34-.32-123, CRS, aj the Mined Land RodarrmJion Ad end 3I-321-123, CRS, of the Colorado Land Roelasaadon Ad jor the Exkndiioa of Coestruction Materials. KNOW ALL MIN BY THESE PRESENTS, THAT: WHEREAS, the Colorado IVfln~ Land Reclamation Ad, C.RS. 34-32-101 eyt ~. (the "Act"), as amended, sud the Colorado Land Reclamation Act for the E>rtraction of Construction Materials, C.RS. 34-32.5-101 gt ~. (the "Act"), as amended, provides that no permit may be issued under the Ad utm7 the Miend Land Reclamation Board (the "Board") receives a perfomlance warrauy (or warranties) that is a written promise to comply with all applicable requirements of the Act. WHEREAS, Kagan & Son, LLC (the"Operator'~,has appliedforapeFmit to conduct a mining operation known as Kagan & Son South Pit (the "Operation") on certain lands in Custer County,Colotado. These lands are desc~'bod'mthepemritapPlication,as amended and supplemented, and are referred to herein as the "Affected Lands". WHEREAS, in its application for the permit, the Operator has agreed to be bound by all requirements of the Act and all applicable riles and regulations of the Board, as amended from time to time. WHEREAS, the Board has determined, in accordance with the Act, that the estimated costs ofreclaznation with regard to those affected lands in Custer County which arenowormaybeoorresulrjacx to the permit are those amounts for the stated periods of time as set forth in the flr)ancial warranty, which rosy be aaaended from time to time to reflect revised estimates of said costs of reclamation otficn of Oafoe of Cobrado Mined Lard Reclamation Active ald Mactive Mimes Geological Survey