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// J.D. MacFarlane <br />Attorney General <br />David W. Robbins <br />Deputy Attorney General <br />Edward G. Donovan <br />Solicitor General <br />February 22; 1979 <br />~l~e ~iutr of (~~rlnrtt~dn <br />DEPARTMENT OF LAW <br />OFFICE OF T/[ ATTOaN[~ G[N E11AL <br />Ms. Janna L. Remington <br />Attorney at Law <br />110 East Virginia Ave. <br />Gunnison, CO 81230 <br />Dear Ms. Remington: <br />• ~II ~II~I~~I~~~~I~II <br />STATE SERVICES BUILDING <br />1525 Sherman Street, 3rd. FI. <br />Denver, Colorado 80203 <br />Phone 839.3611 8r 639-3621 <br />In response to your letter of January 22, 1979, asking for a <br />clarification and further explanation of the necessity of using <br />an insurance company licensed to do business in this state for <br />the surety on a reclamation bond, the surety on a reclamation bond, <br />please note bor. Frank's comments at the bottom of your previous <br />letter of January 11, 1979, Those comments, and the referenced <br />statute, C.R.S. 1973, 10-1-102(7), indicate the necessity arises <br />when the obligation is uncertain of occurence or is unliquidated <br />in amount. Both conditions exist with respect to the surety <br />required on a reclamation bond--i,e „ it is not certain that <br />an event would occur (eg, failure to reclaim) which would invoke <br />the surety coverage, nor is it certain that if such event were <br />to occur in whole or in part, what amount would be necessary <br />(up to the limits of surety) to successfully achieve reclamation. <br />Accordingly, there is not a certain finite dollar obligation <br />which a reclamation surety must pay in any event. Rather, the <br />liability is contingent upon the occurence of specified events, <br />and may vary widely in amount up to the bond limit. <br />AM R. JAMES <br />tent Attorney General <br />• ~~o ~ <br />a ~ 90 <br />t t <br />• <br />` axe ' <br />~~ <br />WRJ/em <br />