2009-05-29_REVISION - M1985184 (5)

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2- WHEREAS, 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, in accordance with the Act, has promised and hereby promises the Board that it will be responsible for all of the estimated costs of reclamation with regard to the Affected Lands. WHEREAS, the Board has determined that the Financial Warranty by the Operator equals the estimated costs of reclamation, as approved by the Board, with regard to the Affected Lands. WHEREAS, as proof of its financial responsibility, the Operator has proceeded pursuant to Section 34-32-117(3)(a)(II) of the Act and has caused the re Sr 57ATL% Bank of T01212t N6 09 , State of kjgornIIV 6 (the "Bank") to issue its Irrevocable Letter of Credit No. 1?6000 &0 dated MP2 M ZZ ZOO4 payable to the Board in the amount of MI U.-SAN Dollars ($ A10.000 } for the period from through and has delivered it to the Board to be held by the Board as proof of the Operator's financial responsibility under this financial warranty. The Bank is not a party to this agreement; its obligations are set forth in its Letter of Credit. Nothing in this Financial Warranty diminishes or qualifies the Bank's obligation under its Letter of Credit. NOW THEREFORE, the Operator is 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 warranty. The Operator shall have sixty (60) days after the date of notice of any such adjustment to fulfill all new requirements. The Operator shall notify the Board immediately of any event which may impair this financial warranty. Additionally, the Warrantor reserves the right to cancel this Financial Warranty, effective only upon an anniversary date, and only Uy glVlllg w-IM110LICr, tU the e11Gct, 111alled by Certined 1V1a11, at least ninety (90) days prior to such anniversary date, addressed to both the operator at its address herein stated, and to the Board or Division at the address herein stated. 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 determining whether impairment has occurred. No misrepresentation by the Operator which may have induced the Bank to deliver its Letter of Credit shall be any defense to any draft by the State under such Letter of Credit.