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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1373 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />PERFORMANCE WARRANTY <br />Pennittee: Otero County <br />Operation: Mendenhall Pit <br />Permit No: M-2004-027 <br />KNOW ALL MEN BY THESE PRESENTS, THAT: <br />COLORADO <br />DIVISION O F <br />M1N sRALS <br />GEOLOGY <br />REC LANATION•NINING <br />SAFETT•SCIENCE <br />gnu Owens <br />Governor <br />Russell George <br />E><ecutlve Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />WHEREAS, the Colorado Mined Land Reclamation Act, C.R.S. 34-32-101 et sue. (the "Act"), as <br />amended, and the Colorado Land Reclamation Act for the Extraction of Construction Materials, <br />C.R.S. 34-32.5-101 et sue. (the "Act"), as amended, provides that no permit may be issued lender the Act until the <br />Mined Land Reclamation Boazd (the "Boazd") receives a performance warranty (or warranties) that is a written <br />promise to comply with all applicable requirements of the Act. <br />WHEREAS, Otero County (the "Pem3ittee"), has applied for a permit to conduct a mining operation <br />Imown as Mendenhall Pit (the "Operation") on certain lands in Otero County, Colorado. These lands aze <br />described in the permit application, as amended and supplemented, and aze referred to herein as the "Affected <br />Lands". <br />WHEREAS, in its application for the permit, the Permittee has agreed to be bolmd by all requirements of <br />the Act and all applicable rules and regulations of the Boazd, as amended from time to time. <br />WHEREAS, the Boazd has determined, in accordance with the Act, that the estimated costs of <br />reclamation with regard to those affected lands in Otero County which aze now or may become subject to the <br />permit aze those amounts for the stated periods of time as set forth in the financial warranty, which maybe <br />amended from time to time to reflect revised estimates of said costs of reclamation. <br />WHEREAS, the Permittee hereby gives the Boazd a performance warranty pursuant to <br />Section 34-32-117(2) or Section 34-32.5-117(2) of the Act, and herein promises the Board that it will comply <br />with all applicable requirements of the Act with regard to those Affected Lands. <br />NOW, THEREFORE, the Pern3ittee hereby promises the Boazd that it will comply with all applicable <br />requirements of the Act and rules and regulations of the Boazd with respect to the Affected Lands. <br />ice of Office of Colorado <br />Mined Land Reclamation Ac[ive and Inactive Mines Geological Survey <br />