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STATE OF <br />DIVISION OF MINERALS AND GEOLOGY <br />Depanmenl of Natural Resources <br />1313 Sherman St., Room 215 <br />Drover, Colorado 80203 <br />Plane: (303) 86&3567 <br />FAX: (3031832106 <br />PERFORMANCE WARRANTY <br />Pertnittee: Rimrock Exploration & Development, Inc. <br />Operation: J Birds <br />Permit No: M-2005-050 <br />COLORADO <br />DIVISION O F <br />MlN ERALS <br />GEOLLOGY <br />aECL~NATION•NININ6 <br />f ~,ETT.ECtEN CE <br />Bill Owem <br />Governor <br />Ruaell George <br />ENxWVe Director <br />Ronald W, Cottony <br />Divifian Dlretlor <br />Naaml Refource Tnrftae <br />This form has been approved by the Mined Land Reclamation Board pursuant to sections 34-32-117, C.R.S., <br />of the Mined Land Reclamation Act and 34-32.5-117, C.R.S , of the Colorado Land Reclamation Act jar the <br />Extraction of Construction Materials. Any alteration or modification of this form, without approval by the <br />Board shall result in the financial warranty being invalid and resu/t in the voiding of any permit issued in <br />confunchion with such invalid financial warranty and subfect the operator to cease and desistorders and civil <br />penalties for operating without a permit pursuant to sections 34-32-123, C.R.S., of the Mined Land <br />Reclamation Act and 34-32.5-123, C.R.S., of the Colorado Land Reclamation Act for the Extraction of <br />Construction Materials. <br />KNOW ALL MEN BY THESE PRESENTS, THAT: <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 sec . (the "Act"), as amended, provides that no pem3it may be issued under the Act until the <br />Mined Land Reclamation Boazd (the "Board") receives a performance warranty (or warranties) that is a written <br />promise to comply with all applicable requirements of the Act. <br />WHEREAS, Rimrock Exploration & Development, Inc. (the "Permittee"), has applied for a permit to <br />conduct a mining operation known as J Birds (the "Operation") on certain lands in Montrose County, Colorado. <br />These lands are described in the permit application, as amended and supplemented, and aze referred to herein as <br />the "At~'ected Lands". <br />WHEREAS, in its application for the permit, the Permittee has agreed to be bound 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 regazd to those affected lands in Montrose County which aze now or may become subj ect to the <br />permit are those amounts for the stated periods of time as set forth in the financial warranty, which may be <br />amended from time to time to reflect revised estimates of said costs of reclamation. <br />