2010-04-22_REVISION - M2003016 (4)

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-2- applicable rules and regulations of the Board, as amended tiom time to time. WHEREAS, in time application for the perrnit, the Operator has agreed with the Board to provide for reclamation of the Affected Lands that are now, or may become, subject to the permit, as required by law. WHEREAS, the Operator and Travelers Casualty and Surety Company of America (the "Warrantor"), a corporation organized and existing under the laws of the State of CT and duly authorized to transact a bonding and surety business in the State of Colorado are hereby and firmly bound unto the State in the suns of One Hundred Ninety Seven Thousand Two Hundred Eighty Dollars and 00/100 Dollars {$ 197.280.00 1 for the life of mane or until such time as replacement is received, for the payment of which sum, well and truly made, we hereby bind ourselves and our personal representatives, successors and assigns, jointly and severally, firmly by these presents, 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 asset forth herein. Said amount maybe 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 oftime 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 anysuch 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 Wamanty or by an endorsement to this Financial Warranty. The Operator and the Warrantor shall notifytheBoard immediately of any event which mayimpair tbisFinmoial Warranty. 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. 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 ofthis Financial Warranty maybe reduced with the approval of the Board so that it reflects the then current estimated cost ofthe 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 maybave induced the Warrantor to execute this financial Warranty shall be any defense to demand bythe State under tWs agreement.. In any single year during the life of the permit, the amount of the Financial Warranty shall not exceed the estimated cost of fully reclaiming all lands to be affected in said year, plus all lands affected in previous permit years and not yet fully reclaimed Reclamation costs shall be computed with reference to current reclamation costs.