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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br /> <br />1313 Sherman St., Room 215 <br />i <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />DeFD <br />PERFORMANCE WARRANTY <br />AUU 18 1997 <br />Qivisign iii e•Illiv(aw CR OU0109y <br />pw.k. <br />ON, <br />DEPARTMENT OF <br />NATURAL <br />RESOURCES <br />Roy Romer <br />Governor <br />James S. Lochhead <br />Executive Director <br />Michael B. Long <br />Division Director <br />Operator: Charles Keeling, Jr. <br />Operation: Keeling Pit <br />Permit No: M-91-081 <br />KNOW ALL MEN BY THESE PRESENTS, THAT: <br />WHEREAS, the Colorado Mined Land Reclamation Act, C.R.S. 34-32-101 et seg. (the <br />"Act"), as amended, and the Colorado Land Reclamation Act for the Extraction of Construction <br />Materials, C.R.S. 34-32.5-101 et seg. (the "Act"), as amended, provides that no permit may be <br />issued under the Act until the Mined Land Reclamation Board (the "Board") receives a performance <br />warranty (or warranties) that is a written promise to comply with all applicable requirements of the <br />Act. <br />WHEREAS, Charles Keeling, Jr. (the "Operator"), has <br />applied for a permit to conduct a mining operation known as Keeling Pit <br />(the "Operation") on certain lands in _ <br />Huerfano _ 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 <br />requirements of the Act and all applicable rules and regulations of the Board, as amended from time <br />to time. <br />WHEREAS, the Board has determined, in accordance with the Act, that the estimated costs <br />of reclamation with regard to those affected lands in Huerfano County which are <br />now or may become subject to the permit are those amounts for the stated periods of time as set <br />forth in the financial warranty, which may be amended from time to time to reflect revised estimates <br />of said costs of reclamation. <br />WHEREAS, the Operator hereby gives the Board a performance warranty pursuant to Section <br />34-32-117(2) or Section 34-32.5-117(2) of the Act, and herein promises the Board that it will <br />comply with all applicable requirements of the Act with regard to those Affected Lands.