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- 3 - <br />14. Although described as an operator in the <br />performance bond, Harrison actually has the status of a <br />guarantor. As such it has the rights and <br />responsibilities of a surety under the regulations, and <br />a warrantor under the bond, including the right to <br />prevent bond forfeiture by performing reclamation work. <br />Except for its obligation to comply with the Act and <br />Regulations in performing such work, Harrison has no <br />obligations under the Act, the regulations, or <br />permit C-81-037 with respect to the permitted area. <br />Harrison shall not be considered an operator or <br />permittee with respect to any portion of the permitted <br />area. At any time, Harrison may forfeit the performance <br />bond and such forfeiture shall release Harrison from all <br />obligations at the site. <br />15. The Harrison performance bond covers only the area <br />depicted in Exhibit 1 to this Agreement, which <br />represents the area depicted in Exhibit A to the bond <br />adjusted so that it falls entirely within the previously <br />disturbed area of the West Pit. The bond does not apply <br />to any other portion of the West Pit, to Overburden <br />Stockpile No. 2, or to any other part of the permitted <br />area. <br />16. As a guarantor performing reclamation in lieu of <br />forfeiture, Harrison is not required to obtain a Coal <br />Mining Permit. <br />17. Harrison shall maintain the bonded area to ensure <br />compliance with the applicable provisions of the <br />Colorado Surface Coal Mining and Reclamation Act, the <br />regulations promulgated thereunder, and the reclamation <br />plan. The applicable regulations shall include, but not <br />be limited to, Rules 4.01, 4.02.1, 4.02.2, 4.02.3, 4.03 <br />as they pertain to erosion control, drainage control and <br />reclamation requirements, 4.05 as it pertains to <br />minimization of impacts to the hydrologic balance during <br />reclamation operations, water quality standards, <br />effluent limitations and diversion of undisturbed <br />waters, 4.14.6, 4.15.5, 4.15.7, 4.15.8, and 4.30.2. <br />18. Harrison may apply for phase II and III bond <br />release when reclamation is sufficiently successful to <br />meet the requirements of Rule 3.03.1. Release of the <br />performance bond shall occur as described in Rule 3.03.2 <br />The period of liability under the performance bond shall <br />be as described in Rule 3.02.3. <br />19. The Division shall inspect the bonded area no less <br />than twelve times per year, and shall provide Harrison a <br />