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-3- <br />No misrepresentation by the operator which may have induced the Bank to deliver its Letter of <br />Credit shall be any defense to any draft by the State under such Letter of Credit. <br />The Board may present drafts upon the Bank for payment under the Letter of Credit if the Board <br />determines that reclamation which ought to have been performed by the Operator, or its successors <br />or assigns, remains unperformed. No other condition precedent need be fulfilled to entitle the Board <br />to receive the amounts of such drafts. However, if, upon completion of such reclamation by the <br />Board, the amounts expended for reclamation shall be less than the amount received from the Bank, <br />the excess shall be promptly refunded to the Operator. <br />If or to the extent that the Bank shall cancel its Letter of Credit and such assurance shall not <br />concurrently be reduced to a cash deposit as substitute assurance, the Operator agrees that it will <br />forthwith provide substitute assurance, in form and substance approved by the Board, equal to the <br />amount of the Letter of Credit which has been so canceled and not reduced to a cash deposit. <br />With the prior consent of the Board, which consent shall not be unreasonably withheld, the <br />Operator may from time to time change the Bank whose Letter of Credit is held by the State as <br />assurance or alter the form of assurance of financial responsibility held by the State for the faithful <br />performance by the Operator of its obligations hereunder, provided that at all times there shall be in <br />existence and delivered to the Board such assurance or other evidence of financial responsibility as <br />shall be required by applicable laws and regulations of the State of Colorado and as shall be, in form <br />and substance, approved by the Board or the Division. <br />The obligation of the Operator shall continue until the Board has released this Financial Warranty <br />or has ordered it forfeited in accordance with applicable provisions of the Act. It is understood that <br />periods of years may necessarily be required before determination can be made that reclamation of <br />the Affected Lands has been satisfactorily completed. It is also recognized that, as reclamation is <br />accomplished, the amount of this Financial Warranty may be reduced with the approval of the Board <br />so that it reflects the then current estimated cost of the remaining reclamation of the Affected Lands. <br />No revision, extension, or renewal of the permit or of the time allowed to complete reclamation shall <br />diminish the Operator's obligation under this Financial Warranty. <br />In any single year during the life of the permit, the amount of the Financial Warranty shall not <br />exceed the estimated cost of fully reclaiming all lands to be affected in said year, plus all lands <br />affected in previous permit years and not yet fully reclaimed. Reclamation costs shall be computed <br />with reference to current reclamation costs. <br />The amount of this Financial Warranty is based upon estimates as to the cost of reclamation, and <br />does not operate to liquidate, limit, enlarge or restrict the Operator's obligations to complete the <br />reclamation, even though the actual costs thereof may substantially exceed the amount of this <br />Financial Warranty.