Laserfiche WebLink
2- <br />WHEREAS, the Board has determined that the Financial Warranty by the Warrantor equals the estimated costs of <br />reclamation, as approved by the Board, with regard to the Affected Lands. <br />WHEREAS, as proof of its financial responsibility, the Warrantor has proceeded pursuant to Section <br />34-32-11.7(3)(2)(11) of the Act and has caused the Wel Is Farqo Bank of <br />State of Colorado (the "Bank") to issue its Irrevocable Letter of Credit No. bi71rj SBq <br />dated February 191 2008 , payable to the Board in the amount of *** see below <br />Dollars ($ 270,362.00 ) for the period from February 19, , 2008 , through February 14, 2099 <br />and has delivered it to the Board to be held by the Board as proof of the Operator's financial responsibility under <br />this financial warranty. The Bank is not a party to this agreement; its obligations are set forth in its Letter ofCredit. Nothing <br />in this Financial Warranty diminishes or qualifies the Bank's obligation under its Letter of Credit. <br />NOW THEREFORE, the Operator and the Warrantor are held hereby firmly unto the State of Colorado in the amount <br />of those sums for those periods of time as set :forth herein, until this financial warranty is amended or released in accordance <br />with applicable law. <br />The Board may, for good cause shown, increase or decrease the amount and duration of this financial warranty. The <br />Operator shall have sixty (60) days after the date of notice of any such adjustment to fulfill all new requirements. <br />The Operator and the Warrantor shall notify the Board immediately of any event which may impair this financial <br />warranty. If the Board receives such notice, or otherwise has reason to believe that this Financial Warranty, has been <br />materially impaired, it may convene a hearing in accordance with the Act for the purpose of determining whether impairment <br />has occurred. <br />No misrepresentation by the Warrantor which may have induced the Bank to deliver its Letter of Credit shall be any <br />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 determines that <br />reclamation which ought to have been performed by the Operator, or its successors or assigns, remains unperformed. No <br />other condition precedent need be fulfilled to entitle the Board to receive the amounts of such drafts. However, if, upon <br />completion of such reclamation by the Board, the amounts expended for reclamation shall be less than the amount received <br />from the Bank, the excess shall be promptly refunded to the Warrantor. <br />If or to the extent that the Bank shall cancel its Letter of Credit and such assurance shall not concurrently be reduced <br />to a cash deposit as substitute assurance, the Operator agrees that it will forthwith provide substitute assurance, in form and <br />substance approved by the Board, equal to the amount of the Letter of Credit which has been so cancelled and not reduced to <br />a cash deposit. <br />With the prior consent of the Board, which consent shall not be unreasonably withheld, the Operator and/or Warrantor <br />may from time to time change the Bank whose Letter of Credit is held by the State as assurance or alter the form of assurance <br />of financial responsibility held by the State for the faithful performance by the Operator of its obligations hereunder; <br />provided that at all. times there shall be in existence and delivered to the Board such assurance or other evidence of financial <br />responsibility as shall be required by applicable laws and regulations of the State of Colorado and as shall be, in form. and <br />substance, approved by the Board or the Division. <br />The obligation of the Operator and the Warrantor 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 periods of years may <br />necessarily be required before determination can be made that reclamation of the Affected Lands has been satisfactorily <br />completed. It is also recognized that., as reclamation is accomplished, the amount of this Financial Warranty may be reduced <br />with the approval of the Board so that it reflects the then current estimated cost of the remaining reclamation of the .Affected <br />Lands, No revision, extension, or renewal of the permit or of the time allowed to complete reclamation shall diminish the <br />Operator's and/or Warrantor's obligation under this Financial Warranty. <br />***Two Hundred Seventy Thousand Three Hundred Sixty-Two and 00/100 Dollars