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?. f <br />project-related fixtures or equipment offered as proof of financial responsibility pursuant to <br />section 34-32.5-117. Such lien shall be in favor of this state. <br />(c) The lien described in paragraph (b) of this subsection (4) shall have priority over <br />all other liens and encumbrances, irrespective of the date of recordation, except liens of <br />record on June 19, 1981, and liens of the United States, this state, and political subdivisions <br />of this state for unpaid taxes and shall attach and be deemed perfected as of the date the <br />board approves issuance of the operator's permit. <br />(5) Funds recovered by the attorney general in proceedings brought pursuant to <br />subsection (4) of this section shall be held in the special account described in section <br />34-32.5-122 and shall be used to reclaim lands covered by forfeited warranties; except that <br />five percent of the amount of such forfeited warranties shall be deposited in the mined land <br />reclamation fund, created in section 34-32-127, to cover administrative costs incurred by the <br />office in performing reclamation. The board shall have a right of entry to reclaim such lands, <br />and upon completion of such reclamation the board shall present a full accounting to the <br />financial warrantor and shall refund all unspent moneys. <br />(6) Notwithstanding any discharge of applicable financial warranties, an operator in <br />default shall remain liable for the actual cost of reclaiming affected lands less any amounts <br />expended by the board pursuant to subsection (5) of this section. <br />(7) Notwithstanding any provision of this section to the contrary, a corporate surety <br />may elect to reclaim affected lands in accordance with an approved plan in lieu of forfeiting <br />a bond penalty. <br />34-32.5-119. Operators - succession. When one operator succeeds another at an <br />uncompleted operation, the board shall release the first operator from all liability as to that <br />operation and shall release all applicable performance and financial warranties as to such <br />operation if the successor operator assumes all liability for the reclamation of the affected <br />land and such obligation is covered by appropriate performance and financial warranties. <br />The fee specified in section 34-32.5-125 (1) (a) (X) shall be paid to the board by the <br />successor operator before the first operator is released from liability and before any financial <br />warranties are released. <br />34-32.5-120. Permit refused - operator in default. The board shall not grant a <br />permit for new mining operations to an operator who is found to be in violation of this article <br />at the time of application. <br />34-32.5-121. Entry upon lands for inspection - reporting certain conditions. <br />(1) The board, the office, or their authorized representatives may enter upon the lands of an <br />operator at any reasonable time for inspection purposes to determine if the requirements of <br />this article have been or are being met. <br />(2) Any person engaged in any mining operation shall notify the office of any failure <br />or imminent failure, as soon as reasonably practicable after such person has knowledge of <br />such condition or of any impoundment, embankment, or slope that poses a reasonable <br />potential for danger to any persons or property. <br />34-32.5-122. Fees, civil penalties, and forfeitures - deposit. (1) All fees and <br />assessments collected pursuant to this article and five percent of the proceeds of any financial