2009-05-15_PERMIT FILE - M2009023 (2)

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-I- WHEREAS. the Operator and American Home Assurance Company (the "Warrantor") a corporation organized and existing under the laws of the State of New York and duly authorized to transact a bonding and surety business in the State of Colorado ar- eb'• and firml bound unto the State in the sum of Sixty-Two Thousand Five Hundred and /Dollars (S 62,500.00 ) for the life of mine or until such time as replacement is received. for the payment of which sure- ,well and truly trade, we hereby bind ourselves and our personal representatives, successors and assigns, jointly and se' erail' . fttmly by these presents. WI AREAS, the Board has determined, in accordance with the Act, that the estimated costs of reclamation of the Affected Lands are those amounts for the stated periods of time as set forth herein. Said amount may be amended from time to time to reflect revised estimates of said costs of reclamation. WHEREAS, the Operator and the Warrantor, in accordance with the Act, has promised and hereby promises the Board that it will be responsible for all the estimated costs of reclamation with regard to the Affected Lands. WHEREAS, the Board has determined that this Financial Warranty by the Warrantor equals the estimated costs of reclamation, as approved by the Board- with regard to the Affected Lands. NOW, THEREFORE. the Operator and the Warrantor are held hereby firmly unto the State of Colorado in the amount of those sums for those periods of time as set forth herein. until this Financial Warranty is amended or released in accordance with applicable law_ The Board may, for good cause shown increase or decrease the amount and duration of this Financial Warranrv. The Operator shall have sixty (60) davs after the date of notice of any such adjustment to increase the surety amount, but no such increase shall bind the Warrantor unless and until it shall have consented thereto in writing by the issuance of an additional Financial Warranty or by an endorsement to this Financial Wan ante. The Operator and the Warrantor shall notify the Board immediately of anv event which may impair this Financial W arranW. If the Board receives such notice, or otherwise has reason to believe that this Financial Warranty has been materially impaired it may convene a hearing in accordance with the Act for the purpose of det__L11i1r g whether impairment has occurred The obligation of the Operator and the Warrantor shall continue until the Board has released this Financial Warranty or has ordered it forfeited in accordance with applicable provisions of the Act. It is understood that periods of years may necessarily be required before determination can be made that reclamation of the Affected Lands has been satisfactorily completed. It is also recognized that, as reclamation is accomplished, the amount of this Financial Warranty may be reduced 'With the approval of the Board so that it reflects the then current estimated cost of the remaining reclamation of the Affected Lands. No revision, extension, or renewal of the permit, or of the time allowed to complete reclamation, shall diminish the Operator's or Warrantor's obligation under this Financial Warranty. No misrepresentation by the Operator which may have induced the Warrantor to execute this Financial Warranty shall be any defense to demand by the State under this agreement. In any single year during the life of the permit, the amount of the Financial Warrant.- shall not exceed the estimated cost of fatly reclaimine all lands to be affected in said year, plus all lands affected in previous permit years and not vet fully reclaimed Reclamation costs shall be computed with reference to current reclamation costs.