2008-03-05_REVISION - M1985023 (7)

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-~- WHEREAS, in the application for the permit, the Operator has asreed with the Board to provide for reclamation of the Affected Lands that are now, or may become, subject to the permit, as required by law. WHEREAS, the Board has determined, in accordance with the Act, that the estimated costs of reclamation of the Affected Lands are those amounts for the stated periods of time as set forth herein. Said amount may be amended from time to time to reflect revised estimates of said costs of reclamation. WHEREAS, the Operator, in accordance with the Act, has promised and hereby promises the Board that it will be responsible for all the estimated costs of reclamation with regard to the Affected Lands. WHEREAS, the Board has determined that the Financial Warranty by the Operator equals the estimated costs of reclamation, as approved by the Board, with regard to the Affected Lands. WHEREAS, as proof of its financial responsibility, the Operator has~proceeded pursuant to Section 34-32-117(3)(a)(III) of the Act and has caused the Vectra Bank Of Montrose Colorado Batik State of (the "Bank") to issue a Certificate of Deposit, No. 494-950129-2 ,dated September 5, 2000 to the Board iri the amount Of f if teen-thousand• seven-hundred sixt ~ payable for the life of the mine or the period from september 5 2000 ~Deaee (ber51116.00 ) and has delivered it to the State, to be held by the State as~proof of he Operator's financial responsibility under this Financial W arranty. The Bank is not a party to this agreement. Its obligations are set forth in its Certificate of Deposit. Nothing in this Financial Warranty diminishes or qualifies the Bank's obligations under its Certificate of Deposit. NOW, 'THEREFORE, the Operator is held hereby firmly unto the State of Colorado in.the amount of those sums for those periods of time as set forth herein, until this Financial Warranty is amended or released in accordance with applicable law. . The Board may, for good cause shown, increase or decrease the amount and duration of this Financial Warranty. The Operator shall have sixty (60) days after the date of notice of any such adjustment to fulfill all new requirements. T;~e Operator shall notir",r the Board irnmediately of any event which may impair this Financial ~tiarranty. If the Board receives such notice, or otherwise has reason to believe that this Financial Warranty has been materially impaired, it may convene a hearing in accordance with the Act for the purpose of determining whether impairment has occurred. The obligation of the Bank shall continue until released in waiting by the Board in accordance with applicable laws specifying Financial Warranty release procedures.