2007-09-25_REVISION - M1984041 (9)

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-2- WHEREAS, the Operator and FIBEPAP' S FDPD INSDRANCS CaltPANY (the "WarraruoI"), a corporaticn organized and ezistittg under the laws of the 5ta:e of cAr.IFOPPIn and duly authorized to transact a bonding and surety business in the State of Colorado are hereby and firmly bound unto the State In the sum of FIFTY PIPE TPODSAND THIFTY--- Dollars ($ 59,030.110-------) for the life of mine or tmdl such tftne as repiaeement is received, for the payment of which sum, wetl and truly trade, we hereby bind ourselves and our personal representatives, successors and assigns, jointly and severally, firmly by these prt;senu. WHEREAS, the Board bas determined, in alcordance with the Act, that the estimated costs of reclamation of the Affected Latins aze arose amouuu for the stated periods of time as set forth herein. Said amount may be amended from time to time to reflect revised estimates of said costs of reclamation.. WHEREAS, the Operator and the Warrantor, in accorda>xe with the Acr, bas promised and hereby promises the Boatel that it will be responsible for all the estimated costs of reclamation with regazd to the Affected Lands. WHI=REAS, cite $oard has determined that this Financial Warranty by the Warrantor equals the estimated costs of reclamation, as approved by the Board, with regard to the Affected Lands. NOW, TFI)=BEFORE, the Operator and the Warramor aze held hereby firmly unto the State of Colorado in the amount of those sums fair those periods of rime as set forth herein, until this Financial warranty is amended or released in accordance wiffi applicable law. The Board tray, for good cause shown, increase or decrease the amount and durarion of this Financial Wartanry. The Operator shall have sixty (60) days after the date of notice of any such adjustment to increase the surety amount, but no such increase shall bind the Warrantor unless and until it shall have consented thereto in wtiti>;g by the issuance of en additional Financial Warranty or by an tmdorsemetu to this Financial Warranty. The Operator and the Warrantor shall notify the Board immediately of say event which may impair this Pinancial Wazraaty. If the Board receives sttrhh notice, or otherwise has reason to believe that this Financial Warranty has been materially unpaired, it may convene a hearing is accordance with the Aa for the propose of determining whether impairment has occurred. The obligation of the Operator ctrl the Wamntor shall continue until the Board has released this Financial Warranty or has ordered it forfeited in accordance with applicable provisions of the Act. It is understood that periods of years tray necescari[y be required before determination can be made that reclartradon of the Affected Lands has btxn satisfactorily wmpleted. >t is also recognized that, as reclamation is accomplished, the amannt of this Financial Warranty toay be redaced with the approval of the Board so that it reflecra the then current estimated cost of the remairritlg reclamation of the Affeaui Lands. No revision, exttasion, or renewal of the permit, or of the time allowed to complete reclamation, shall diminish the Operator's or Watramor's obligation under this Financial Warraary. No misrepresernarion by the Operator which tray have induced the Watramor to execute this Faraacial Warranty shall be a~ defense to demand by the State under this agreemem_ In any singe year during the life of the permit, the amount of the Financial Warranty shall not excced the estimated cASt 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 ro current reclamation costs.