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5TATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources f Pwp",L 4, <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />DEPARTMENT OF <br />RF??1 NATURAL <br />AUG ? RESOURCES <br />V 18 1997 Governor <br />LIZ Roy FINANCIAL WARRANTY <br />LETTER OF CREDIT James S. Lochhead <br />J Executive Director <br />DiviSibnr ew?ln?rls-,e16?y `/ <br />Michael B. Long <br />ivision Director <br />Operator.-.- <br />Operation: rl i?>a Jr - <br />Keeling Pit <br />Permit No.: M-91-081 <br />Bank: Huerfano County Branch, The First National Bank in Trinidad <br />Street: 135 W 6th <br />City: W 1 s nb g, <br />State: Colorado Zip Code: 81055 <br />Area Code: 719 Telephone: 738 3594 <br />KNOW ALL MEN BY THESE PRESENTS, THAT: <br />WHEREAS, the Colorado Mined Land Reclamation Act, C.R.S. 1973, 34-32-101 et seg. <br />(the "Act"), as amended, provides that no permit may be issued under the Act until the Mined <br />Ladd nC iariiation Board (the "Board") receives a Financial Warranty (or Warranties) as <br />described in the Act. <br />a <br />WHEREAS, Chalres Keeling, Jr. (the "Operator"), <br />corporation, has applied for a permit to <br />conduct a mining operation known as Keeling Pit (the "Operation"), <br />on certain lands in Huerfano County, Colorado. These lands are <br />described in the permit application, as amended and supplemented, and are referred to herein <br />as the "Affected Lands". <br />WHEREAS, as part of the application for the permit, the Operator has agreed to be bound <br />by all requirements of the Act and all applicable rules and regulations of the Board, as amended <br />from time to time.