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STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Department of Natural Resources 1313 Sherman 51., Raom 215 Denver, Colorado 80203 Phone: (303) 86fr3567 FAX: (303)832$106 COLORADO DIVISION O F MIN SRALS GEOLOGY SAf ETY•SCIENCE Bill Ovmm Governor PERFORMANCE WARRANTY Russeu ceorse ExecNtve DlreUOr Ronald W. Cattany Division Dinxlor Natural Resource TNSree Permittee: Carrizo Stone, LLC Operation: Carrizo Stone North Permit No: M-2005-067 This form has been approved by the Mined Land Reclamation Board pursuant to sections 34-32-117, C.R.S., of the Mined Land Reclamation Act and 34-32.5-117, C.R.S., of the Colorado Land Reclamation Act for the Extraction of Construction Materials. Any alteration or modification of this form, without approval by the Board shall result in the financial warranty being invalid and resu/t in the voiding ojany permit rssued in conjunction with such invalid financial warranty and subject the operator to cease and desist orders and civil penalties for operating without a permit pursuant to sections 34-32-123, C.R.S., of the Mined Land Reclamation Act and 34-32.5-123, C.R.S., of the Colorado Land Reclamation Act for the Extraction of Construction Materials . KNOW ALL MEN BY THESE PRESENTS, THAT: WHEREAS, the Colorado Mined Land Reclamation Act, C.R.S. 34-32-101 et seg. (the "Act"), as amended, and the Colorado Land Reclamation Act for the Extraction of ,Construction Materials, C.R.S. 34-32.5-101 et sec . (the "Act"), as amended, provides that no permit may be issued under the Act until the Mined Land Reclamation Boazd (the "Boazd") receives a performance warranty (or warranties) that is a written promise to comply with all applicable requirements of the Act. WHEREAS, Carrizo Stone, LLC (the "Permittee"), has applied for a permit to conduct a mining operation known as Carrizo Stone South (the "Operation") on certain lands in Baca County, Colorado. These lands aze described in the permit application, as amended and supplemented, and aze 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 Baca County which aze 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.' Office of Office of ~ Colorado Mined land Reclamation Active and Inactive Mines Geological Survey