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,~ PERFORMANCE WARRANTY Construction Material Operation STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Departmem of Natural Resources 131 3 Sherman St., Roam 215 Denver, Colorado 80203 Phone: (3031 866-3567 FAX (303) 832-8106 Operator: Evan L. Melby, Inc. Operation: Pit I Permit No: M-1999-073 KNOW ALL MEN BY THESE PRESENTS, THAT: Greg E. Walther E>recuuve Director Michael 8. long Division Director WHEREAS, the Colorado Mined Land Reclamation Act, C.R.S., 34-32.5-1O1 et sec . (the "Act"), as amended, provides that no permit may be issued under the Act until the Mined Land Reclamation Board (the "Board") receives a performance warranty (or warranties) that is a written promise to comply with all applicable requirements of the Act. WHEREAS, Evan L. Me1by, Inc. (the "Permittee"), has applied for a permit to conduct a mining operation known as Pit 1 (the "Operation") on certain lands in Costilla Counry, Colorado. These lands aze described in the permit application, as amended and supplemented, and are referred to herein as the "Affected Lands". WHEREAS, in its application for the permit, the Permittee has agreed to be bound by all requirements of the Act and all applicable rules and regulations of the Board, as amended from time to time. WHEREAS, the Board has determined, in accordance with the Act, that the estimated costs of reclamation with regard to those affected lands in Costilla County which are now or may become subject to the permit are those amounts for the stated periods of time as set forth in the financial warranty, which may be amended from time to time to reflect revised estimates of said costs of reclamation. WHEREAS, the Permittee hereby gives the Board a performance warranty pursuant to Section 34-32.5-1 l7 of the Act, and herein promises the Board that it will comply with all applicable requirements of the Act, and the Rules and Regulations as may be amended, with regard to [hose Affected Lands. NOW, THEREFORE, the Permittee hereby promises the Board that it will comply with all applicable requirements of the Act and rules and regulations of the Board with respect to the Affected Lands. DlvlsroN of M[NEI~ALS GEOLOGti RECLAMATION MINING•SAFETY Bill Owens Governor FURTHER, the Permittee hereby promises the Board that it will comply with all of the terms of the application for a permit, as amended and supplemented, as well as any conditions attached to the permit by the Board.