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<br />In any single year during the life of the permit, the amount of the Financial Warranty shall not exceed the estimated
<br />cost of fully reclaiming all lands to be affected in said year, plus all lands affected in previous permit years and not yet fully
<br />reclaimed. Reclamation costs shall be computed with reference to current reclamation costs.
<br />The amount of this Financial Warranty is based upon estimates as to the cost of reclamation, and does not operate to
<br />liquidate, limit, enlarge or restrict the Operator's obligations to complete the reclamation, even though the actual costs thereof
<br />may substantially exceed the amount of this Financial Warranty.
<br />This Financial Warranty shall be subject to forfeiture whenever the Board determines that any one or more of the
<br />following circumstances exist:
<br />1. A Cease and Desist Order entered pursuant to Section 34-32-124 of the Act has been violated, and the
<br />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 it Performance Warranty, and such default has not been cured, although
<br />written notice and ample time to cure such default has been given; or
<br />3. The Warrantor has failed to maintain it Financial Warranty in good standing as required by the Act; or
<br />4. The Operator and/or Warrantor no longer has the .financial ability to carry out its obligations in accordance
<br />with the Act.
<br />The description of lands herein is for convenience of reference only, and no error in such description, nor any revision
<br />of the 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 Warrantor and/or the Operator hereunder, which shall extend to the reclamation of all such
<br />lands disturbed.
<br />If this Financial Warranty applies to National Forest System lands, and if this Financial Warranty is accepted by the
<br />Untied States Forest Service ("U.S.F.S.") as the bond required under 36 C.F.R. 228.13, then. the Operator and Warrantor,
<br />having requested that the Board and the U.S.F.S. accept this single Financial Warranty in lieu of the separate bonds which
<br />would otherwise be required by applicable law, hereby agree that, notwithstanding any other provision hereof, or of law, this
<br />Financial Warranty shall remain in full force and effect until U.S.F.S. has advised the
<br />Board by written notice that the Operator's obligations to U.S.F.S., for which this Warranty is executed, have been.
<br />satisfied and, until its release, has been approved. by the Board.
<br />("Land Board"), and if this Financial Warranty, in whole or in part, is accepted by the Land Board as the bond
<br />required under its applicable law and procedures, then the Operator and Warrantor, having requested that the Board accept
<br />this Financial Warranty in. lieu of the separate bonds which would otherwise be required by the Colorado Mined Land
<br />Reclamation Board or Division of Reclamation, Mining and Safety and by the Land Board, hereby agree that,
<br />notwithstanding any other provision hereof, or of law, this Financial Warranty shall remain in full force and effect until the
<br />Board is notified in writing by the Land Board. that the Operator's obligations to the Land Board, for which this Warranty is
<br />executed, have been satisfied and, until its release, is approved 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 B.L.M has,
<br />pursuant to 43 C.F.R. 3809.1-9, accepted this Financial Warranty in lieu ofrequiring 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
<br />that the Operator's obligations to the BLM, for which this warranty is executed, have been satisfied and, until its release, is
<br />approved by the Board.
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