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STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Department of Natural Resources I f 1 3 Sherman 51.. Room 215 Dcmcr, Colorado 80?03 Phnnr: 13031 H66-356: rAx:l3o31 slz-aloe PERFORMANCE WARRANTY Construe[ion Material Operation I~~ DEPARTMENT OF NATURAL RESOURCES Operator: William & Beverly Caldwell and Albert & Lola Nesselhuf Rny Romer Governor Operation: Caldwell-Nesselhuf Pit No. 1 lames 5 Lochhead E~ecwive D~reclor Michael B Lonµ Permit No: M-97-07I Division Director KNOW ALL MEN BY THESE PRESENTS, THAT: WHEREAS, the Colorado Mined Land Reclamation Act, C.R.S., 34-32.5-101 et seg. (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 wri[ten promise to comply with all applicable requirements of the Act. WHEREAS, William & Beverly Caldwell and Albert & Lola Nesselhuf (the "Permittee"), has applied for a permi[ to conduct a mining operation known as Caldwell-Nesselhuf Pit No. 1 (the "Operation") on certain lands in Crowley 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 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 Crowley 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 34-32.5-117 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 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. FURTHER, the Permittee hereby promises the Board [hat 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.