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STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Department of Natpral Resources 1313 Sherman St., Room 215 D I v I S t o N o r Denver, Colorado 80203 Phone: (303) 866-3567 MINERAL S FAX: (303) 832-8106 & GEOLOGY PERFORMANCE WARRANTY n eN i N c"• s"nTF E°r Y Bill Owens Permittee: Prowers County Governor Greg E. Walther Executive Director Operation: Davis Pit Ronald W. Cottony Acting Division Director Pemut No: M-2002-062 KNOW ALL MEN BY THESE PRESENTS, THAT: WHEREAS, the Colorado Mined Land Reclamation Act, C.R.S. 34-32-101 et sec . (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 Board (the "Boazd") receives a performance warranty (or warranties) that is a written promise to comply with all applicable requirements of the Act. WHEREAS, Prowers County (the "Permittee"), has applied for a permit to conduct a mining operation known as Davis Pit (the "Operation") on certain lands in Prowers County, Colorado. These lands are 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 Boazd, 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 Prowers County which aze now or may become subject to the permit aze those amounts for the stated periods of time as set forth in the financial warranty, which maybe amended from time to time to reflect revised estimates of said costs of reclamation. WHEREAS, the Permittee hereby gives the Boazd a performance warranty pursuant to Section 34-32-117(2) or Section 34-32.5-117(2) of the Act, and herein promises the Board that it will comply with all applicable requirements of the Act with regard to those 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.