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PERFORMANCE WARRANTY <br />Permittee: AZCO Construction, Inc. <br />Operation: AZCO Pit <br />Permit No: M-2004-029 <br />KNOW ALL MEN BY THESE PRESENTS, THAT: <br />WHEREAS, the Colorado Mined Land Reclamation Act, C.R.S. 34-32-101 et ~. (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 seq. (the "Act"), as amended, provides that no permit maybe issued under the Act until the <br />Mined Land Reclamation Board (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, AZCO Construction, Inc. (the "Pennittee"), has applied for a permit to conduct a mining <br />operation known as AZCO Pit (the "Operation") on certain lands in Fremont 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 Pemuttee 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 Board has determined, in accordance with the Act, that the estimated costs of <br />reclamation with regazd to those affected lands in Fremont County which aze now or may become subject to the <br />permit are 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 regazd to those Affected Lands. <br />