2010-09-27_REVISION - M2003037 (7)

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06/28/2007 15:27 9702475104 DMG DURANGO OFFICE PAGE 03108 p - 2 RECFFI\/F- P JUN 2 8 2007 Division of Reclamation, Mining and Safety WFI.BREAS, as part ofthc applicatit?n for the permit, the Operator has agreed to be bound by all requiaretnents of the Act and all applicable rules and regulations of the Board, as amended from time to time- om subject thewpit the Board to prov lade for WHP-REAS, its. its application for the permit, the Operator reclamation of the Affected Lands that are now, or may WHEREAS, the Board has detennincd, in accordance with the Act, that the estimated costs of reclamation of the Affmted 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 estirnates of said costs of reclamation. WHEREAS, The Operator, in accordance with the Act, has premised and hereby promises the Board that it will be responsible for all of the estimated costs of -reclamation with regard to the Affected Lan,& WHEREAS, the Board has determined that the Financial, Warranty byOperator equals the estimated costs of reclamation, as approved by the Board, with, regard to the Affected Lands. WHEREAS, as proof of its financial responsibil . th Operator r a bas s proceeded pursuant to Section 34-32-11.7(3)(a)(II) of the Act and has caused the ank'' Bank of /l?, . , State of ,^ e (the "B) to issue its Irrevocable Letter of Credit No, elated n e 2 2 a v7..... payable to tho'Board. Dr?e vuf&*e/ Dh?1a rc oltars (S oo, )for the period frarxt in the axxtaunt of _Nt n o? and has delivered it to the Board u yr t to a"? ,through ,a e to be held by the Board as proof of the Operator's financial responsibility under this financial warranty. The Bank is not aparty to this agreement; its obligations are set forth in its Letter of Credit. Nothing in. this Financial Warranty diminishes or qualifies the Bmk's obligation under its Letter of Credit. NOW THERE, 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 relea rdance 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. nevr requirments. The Operator sbail notify the 13oard 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 by giving written notice to the effect, trailed by Clertified. Mail, at least ninety (90) clays 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 tire Act for the purpose of determining whdher impairment has occurred. No rni.srcpresentation 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.