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STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Department of Natural Resources 1313 Sherman St.. Roam 215 Denver, Colorado 80207 Phone: 13D3) 866-3567 FAX: (303) Bl'--8106 Operator: Fremont County Operation: Howard Pit # I & #2 Permit No: M-99-033 PERFORMANCE WARRANTY Construction Material Operation KNOW ALL MEN BY THESE PRESENTS, THAT: DIVISION OF MINERALS GEOLOGY RECLAMATION MIN ING•SAFETY Bil I Owens Governor Greg E watcher Ezeculive D~~ector Michael g. LOng Division Dueclor WHEREAS, the Colorado Mined Land Reclamation Act, 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 "Board") receives a performance warranty (or warranties) that is a written promise to comply with all applicable requirements of the Act. WHEREAS, Fremont County ([he "Yermi[[ee"), has applied for a permit [o conduct a mining operation known as Howard Pit #I & #2 (the "Operation") on certain lands in Fremont County, Colorado. These lands are 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 [he Ac[ and all applicable rules and regulations of the Board, as amended frrm time [o time. WHEREAS, [he Board has determined, in accordance with the Act, that the estimated costs of reclamation with regard to those affected lands in Fremont 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-I 17 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 those Affected Lands. NOW, THEREFORE, the Permi[[ee 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 [he Affected Lands. 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 [he Board.