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AANOLD 8e POETEA Mr. Michael Long December 9, 1992 Page 3 As required by the option, Harrison Western filed the Bond with the Division in October 1982. See Finan- cial Warranty: Corporate Surety (Oct. 18, 1982) (excerpt attached as Exhibit C). The bond erroneously identifies Harrison Western as the "operator" of the West Pit and incorrectly states that Harrison Western had "applied for a permit to conduct a mining operation known as West Pit." Id at 1.1 In fact, Harrison Western did not undertake any mining operations at the West Pit and never sought or received a mining permit for the area. Nor did it act as a corporate surety. Rather, as the Division later confirmed, Harrison Western "actually ha[d] the status of a guarantor." Compliance Agreement Regarding Harrison Western Corpo- ration Responsibilities at the West Pit of the GEC Minerals Site, Fremont County, Colorado at 1 14 (April 22, 1992) ("Compliance Agreement") (attached as Exhibit D). In May 1983, Harrison Western formally notified GEC that it would not exercise the option. At no time did Harrison Western do any mining at or otherwise mate- rially expand or modify any portion of the Bonded Area. Id. at 7 5. In February 1984, the Board revoked GEC~s mining permit and ordered GEC to reclaim the minesite. Id. at 7 6. Following permit revocation, GEC conducted back- fill and grading and drainage control activities at the West Pit. Id. at 77. These activities formed the basis of a Phase 1 bond release for the Bond in 1986, which reduced the amount from $143,000 to $57,200. Id. In requesting this partial release, Harrison Western specifically reserved its right "to challenge the valid- ity of the [B]ond, particularly with respect to the pur- poses and duration for which the [B]ond was filed." Letter from David S. Neslin to David C. Shelton 2 (Dec. 9, 1985) (attached as Exhibit E). GEC subsequently defaulted on the remainder of its reclamation work, leading to a forfeiture of its 1 At the apparent request of the Division, GEC was later added to the Bond as a principal. See Neslin Memorandum at 3.