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<br />If the Board shall notify the Warrantor that the Operator is in default, and if the Board shall initiate any Financial Warranty
<br />forfeiture procedures required by law or regulation, the Warrantor may, in lieu of making payment to the Board of the
<br />amount due hereunder, cause the reclamation to be timely performed in accordance with all requirements of the Act and all
<br />applicable rules and regulations. In such event, when and if the reclamation has been timely performed to the satisfaction of
<br />the Board or Division, this Financial Warranty shall be released. If the reclamation shall not be so performed to the
<br />satisfaction of the Board or Division, this Financial Warranty shall remain in full force and effect.
<br />This Financial Warranty shall be subject to forfeiture whenever the Board determines that any one or more of the following
<br />circumstances exist:
<br />1. A Cease and Desist Order entered pursuant to Section 34-32-124 of the Act has been violated, and
<br />the corrective action proposed in such Order has not been completed, although ample time to have done so has elapsed; or
<br />2. The Operator is in default under its Performance Warranty, and such default has not been cured,
<br />although written notice and ample time to cure such default has been given; or
<br />3. The Operator and/or the Warrantor has failed to maintain its Financial Warranty in good standing as
<br />required by the Act; or
<br />4. The Warrantor no longer has the financial ability to cant' out its obligations in accordance with the
<br />Act.
<br />The description of lands herein is for convenience of reference only, and no error in such description, nor any revision of the
<br />permitted mining area, nor the disturbance by the Operator of lands outside of the permitted mining area shall alter or
<br />diminish the obligations of the Operator and/or Warrantor hereunder, which shall extend to the reclamation of all such lands
<br />disturbed.
<br />If this Financial Warranty applies to National Forest System lands, and if this Financial Warranty is accepted by the United
<br />States Forest Service ("U.S.F.S.") as the bond required under 36 C.F.R. 228.13, then the Operator, having requested that the
<br />Board and the U.S.F.S. accept this single Financial Warranty in lieu of the separate bonds which would otherwise be
<br />required by applicable law, hereby agrees that, notwithstanding any other provision hereof, or of law, this Financial Warranty
<br />shall remain in full force and effect until U.S.F.S. has advised the Board by written notice that the Operator's obligations to
<br />U.S.F.S., for which this Warranty is executed, have been satisfied, and until the financial warranty has been released by the
<br />Board.
<br />If this Financial Warranty applies to lands under the jurisdiction of the State Board of Land Commissioners ("Land Board"),
<br />and if this Financial Warranty, in whole or in part, is accepted by the Land Board as the bond required under its applicable
<br />law and procedures, then the Operator, having requested that the State accept this Financial Warranty in lieu of the separate
<br />bonds which would otherwise be required by the Colorado Mined Land Reclamation Board or Division of Reclamation,
<br />Mining and Safety and by the Land Board, hereby agrees that, notwithstanding any other provision hereof, or of law, this
<br />Financial Warranty shall remain in full force and effect until the Board is notified in writing by the Land Board that the
<br />Operator's obligations to the Land Board, for which this Warranty is executed, have been satisfied, and until the financial
<br />warranty has been released by the Board.
<br />If all or any part of the Affected Lands are under the jurisdiction of the Bureau of Land Management, United States
<br />Department of the interior (the "BLM"), and if, at the request of the Operator on this Financial Warranty, the BLM has,
<br />pursuant to 43 C.F.R. 3809.1-9, accepted this Financial Warranty in lieu of requiring a separate reclamation bond payable to
<br />the United States, then, notwithstanding any other provision of this Financial Warranty, or of law, the Operator and
<br />Warrantor hereby agree that this Financial Warranty shall not be released until the Board is advised in writing by the BLM
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