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STATE OF COLORADO <br />DI'.'ISION Of MI-`?:RALS AND GEOLOGY <br />C)Cpjrl TQ• : of ?a:u•>: ?ecnurces <br />131, 3 Shp•m.in S, - Rctorn 215 <br />Dan•e:. Coinrado 6C.C 1 <br />?hone i3Ci, Lei,(,-3io: <br />E-kX• (303! E32-H106 <br />PERFORMANCE WARRANTY <br />Operator: <br />NIELSONS, INC. <br />"ail <br />I <br />DE P,RT NAENT OF <br />NATURAL: <br />RESOURCES <br />Roy Ro-v <br />Go. ernor <br />iarnes 5.:o6head <br />E.L-CU1-e 7:--evor <br />michdcl a' Long <br />Di%-;•Io- D,4-:or <br />Operation: _ Red Mesa Pit <br />Permit No: <br />KNOW ALL ME's BY THESE PRESENTS, THAT: <br />WHEREAS, the Colorado Mined Land Reclamation Act, CRS as amended, 34-32-101 <br />et seq. (the "Act"), as amended, provides that no permit may be issued under the Act until the <br />Mined Land Reclamation Board (the "Board") receives a performance warranty (or warranties) <br />that is a written promise to comply with all applicable requirements of the Act. <br />WHEREAS, NIELSONS, INC. (the "Operator"), <br />has applied for a permit to conduct a mining, operation known as <br />Red Mesa Pit (the "Operation") on certain lands in <br />La Plata County, Colorado. These lands are described in the permit <br />application, as 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 <br />time to time. <br />WHEREAS, the Board has determined, in accordance with the Act, that the estimated <br />costs of reclamation with regard to those affected lands in La Plata County <br />which are now or may become subject to the permit are those amounts for the stated periods of <br />time as set forth in the financial warranty, which may be amended from time to time to reflect <br />revised estimates of said costs of reclamation. <br />WHEREAS, the Operator hereby gives the Board a performance warranty pursuant to <br />Section 34-32-117(2) of the Act, and herein promises the Board that it will comply with 211 <br />applicable requirements of the Act with regard to those Affected Lands.