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<br />A$NOLD 8e POI~TEA <br />Mr. Michael Lonq <br />December 9, 1992 <br />Page 7 <br />performance bond," and the term "applicant" is sepa- <br />rately defined to mean "a person applying for a permit," <br />which would not encompass guarantors like Harrison <br />Western, which neither applied for, nor received, a per- <br />mit. Colo. Rev. Stat. §§ 34-33-103(17), -113(1) <br />(emphasis added). The same provision further specifies <br />that the bond must cover the area "upon which the <br />applicant will initiate and conduct surface coal mining <br />and reclamation operations," which, again, would exclude <br />guarantors. ~. (emphasis added). Other provisions <br />provide that bonds must be "executed by the applicant <br />and a corporate surety," unless "the applicant demon- <br />strates that he has the financial means sufficient <br />to self-bond." Id. at § 34-33-113(2), (3) (emphasis <br />added). The legislative declaration similarly indicates <br />that only "those persons involved in surface coal mining <br />operations" should be required to "reclaim the land <br />affected by their operations." Id. at § 34-33-102. <br />Plainly, bonds are to be submitted by the applicant and, <br />if appropriate, a corporate surety. <br />Nor is such authority "necessary" to achieve the <br />Board's statutory objectives. Given that the Board has <br />apparently never accepted a guarantor bond on any other <br />occasion in the 16 years that the Act has been in place, <br />it is difficult to understand how such authority could <br />be considered a necessity. As illustrated by this case, <br />the use of guarantor bonds leads to confusion and un- <br />fairness, by imposing costly and unanticipated responsi- <br />bilities upon a party who, unlike the applicant, is not <br />responsible for the disturbance in question and, unlike <br />a surety, is not in the bonding business and receives no <br />consideration for undertaking these responsibilities. <br />In addition, in this case the guarantor, <br />Harrison-Western, intended to limit the bond to a brief <br />option period and did not intend to assume responsibil- <br />ity for the underlying reclamation obligations, an <br />intention that was apparently understood and encouraged <br />by the Division. This suggests that the bond was in- <br />fected by mutual mistake or was obtained through <br />inequitable conduct, either of which would justify reci- <br />sion of the bond. See, e.g., Carpenter v. Hill, 283 <br />P.2d 963, 965 (Colo. 1955) (mutual mistake); Bovles <br />Brothers Drilling v. Orion Industries, 761 P.2d 278, 281 <br />(Colo. App. 1988) (inequitable conduct). <br />