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J <br />STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br /> <br />1313 Sherman St, Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 632-8106 <br />(J <br /> <br />PERFORMANCE WARRANTY <br />Operator: Varra Companies, Inc. <br />Operation: Vader Pit <br />Permit No: M1978-287 <br />COLORADO <br />DIVISION OF <br />MIN RALS <br />GEOLOGY <br />RECLAMATION-MINING <br />SAFETY-SCIENCE <br />Bill Owens <br />Governor <br />Russell George <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <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, CRS., of the Colorado Land Reclamation Act for the <br />Fxtraction 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 result in the voiding of any permit issued in <br />conjunction with such invalidJlnancial warranty and subject the operator to cease and desist orders 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, GR.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, CRS. 34-32-101 et M. (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 M. (the "Act), as amended, provides that no permit maybe issued under the Act until the <br />Mined Land Reclamation Board (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, Varra Companies, lnc. (the "Operator"), has applied for a permit <br />to conduct a mining operation known as Vader Pit (the "Operation") on certain <br />lands in Gunnison County, Colorado. These lands are described in the permit application, as <br />amended and supplemented, and are referred to herein as the "Affected Lands". <br />WHEREAS, in its application for the permit, the operator has agreed to be bound by all requirements of <br />the Act and all applicable rules and regulations of the Board, 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 regard to those affected lands in Gunnison County which are now or may <br />become subject to the permit are those amounts for the stated periods of time as set forth in the financial <br />warranty, which may be amended from time to time to reflect revised estimates of said costs of reclamation. <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Survey