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STATE OF COLORADO Agreement Project Name: Ohio Creek #2 Project No.: PKA-6-374 This Agreement is between the State of Coloredo, by and acting and through the Department of Natural Resources, Division of Minerals and Geology, hereinafter called the PRINCIPAL REPRESENTATIVE, and J.A. Clarke Corporation, 119 S. Main St., Gunnison, CO 81230, hereinafter called the CONTRACTOR. WHEREAS, authority exists'in the Law and Funds have been budgeted, appropriated and otherwise made available and a sufficient uncommitted balance thereof remains available for encumbering and subsequent payment of his Agreement, under Fund ~7d _, Appr 15D , GBL W l14 ,Contract Encumbrance Number '[.SSA ;and Ql,;, d3lf WHEREAS, the State is authorized to spend and will encumber a total of Fourteen Thousand Four Hundred Dollars (514,400.001, excluding contingency; WHEREAS, the legislature has declared it to be a State policy that reclamation of land affected by mining is both necessary and proper and to promote the reclamation of mined areas left without adequate reclamation which continue in their unreclaimed condition to degrade the quality of the environment or to endanger the health or safety of the public (34-33-102 C.R.S. as amendedl; and WHEREAS, The Governor has designated the Division of Minerals and Geology as the agency responsible for inactive mine reclamation in Colorado; and WHEREAS, one of the duties of the Inactive Mine Reclamation Program is to cooperate with other State agencies and institutions in the implementation of the Colorado Mined Land Reclamation Act and the Colorado Surface Coal Mining Reclamation Act 134-21-101 C.R.S. as amendedl; NOW THEREFORE it is hereby agreed that: 1. The Contractor agrees to furnish all the work, labor and materials and perform all the work required for the complete and prompt execution of everything described or shown in, or reasonably implied from the Contract Documents, including the Drawings and Specifications for the above described project. 2. The Contractor agrees to do the work in a first class, substamial and workmanlike manner to the satisfaction of the State of Colorado and its Project Manager in strict accordance with the provisions of the Contract Documents, including the Drawings and Specifications. 3. The Contractor agrees to complete the entire project within 28 calendar days from the date of the _ Notice to Proceed, to begin work within ten (10) days from the Notice to Proceed and to prosecute the work with due diligence to completion. 4. The Contractor agrees that the completion of the project within this time limit is an essential feature of this Agreement and agrees to proceed with due diligence, taking all precautions and making all necessary arrangements to insure the completion of the work within the prescribed time. 5. The Contractor agrees that his failure to complete the work within the time allowed shall be considered as a breach of the Contract and entitle the State of Colorado to collect Liquidated Damages for delay in completion, in accordance with Article 40, of The General Conditions and the Special Conditions of the Contract. (over)