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This Financial Warranty shall be subject to forfeiture whenever the Board determines that any one or
<br />more of the following circumstances exist:
<br />1. A Cease and Desist Order entered pursuant to Section 34-32-124 of the Act has been violated,
<br />and the corrective action proposed in such Order has not been completed, although ample time to have don so
<br />has elapsed; or
<br />2. The Operator is in default under its Performance Warranty, and such default has not been cured,
<br />although written notice and ample time to cure such default has bee given; or
<br />3. The Warrantor has failed to maintain its Financial Warranty in good standing, as required by the
<br />Act; or
<br />4. The Operator and/or Warrantor no longer has the financial ability to carry out its obligations in
<br />accordance with the Act.
<br />The description of lands herein is for convenience of reference only, and no error in such description,
<br />nor any revision of the permitted mining area, nor the disturbance by the Operator of lands outside of the
<br />permitted mining area shall alter or diminish the obligations of the Operator hereunder, which shall extend to the
<br />reclamation of all such lands disturbed.
<br />Interest on Certificates of Deposit shall not be credited to the Certificate of Deposit. The Warrantor
<br />shall receive all such interest.
<br />The Operator and/or Warrantor may, from time to time, withdraw a Certificate of Deposit which is
<br />assurance hereunder if and to the extent that a substitute Certificate of Deposit is simultaneously deposited as
<br />assurance hereunder in the same amount as the Certificate withdrawn.
<br />If this Financial Warranty applies to National Forest System lands, and if this Financial Warranty is
<br />accepted by the United States Forest Service ("U.S.F.S.") as the bond required under 36 C.F.R, 228.13, then the
<br />Operator and Warrantor, having requested that the Board and the U.S.F.S. accept this single Financial Warranty
<br />in lieu of the separate bonds which would otherwise be required by applicable law, hereby agree that,
<br />notwithstanding any other provision hereof, or of law, this Financial Warranty shall remain in full force and
<br />effect until U.S.F.S. has advised the Board by written notice that the Operator's obligations to U.S.F.S., for
<br />which this Warranty is executed, have been satisfied and, until its release, has been approved by the Board.
<br />If this Financial Warranty applies to lands under the jurisdiction of the State Board of Land
<br />Commissioners ("Land Board"), and if this Financial Warranty, in whole or in part, is accepted by the Land
<br />Board as the bond required under its applicable law and procedures, then the Operator and Warrantor, having
<br />requested that the State accept this Financial Warranty in lieu of the separate bonds which would otherwise be
<br />require by the Colorado Mined Land Reclamation Board or Division of Minerals and Geology and by the Land
<br />Board, hereby agree that, notwithstanding any other provision hereof, or of law, this Financial Warranty shall
<br />remain in full force and effect until the Board is notified in writing by the Land Board that the Operator's
<br />obligations to the Land Board, for which this Warranty is executed, have been satisfied and, until its release, is
<br />approved by the Board.
<br />If all or any part of the Affected Lands are under the jurisdiction of the Bureau of Land Management,
<br />United States Department of the Interior (the "BLM"), and if, at the request of the Operator on this Financial
<br />Warranty, the BLM has, pursuant to 43 C.F.R., 3809.1-9, accepted this Financial Warranty in lieu of requiring a
<br />separate reclamation bond payable to the United States, then, notwithstanding any other provision of this
<br />Financial Warranty, or of law, the Operator and Warrantor hereby agree that this Financial Warranty shall not be
<br />release until the Board is advised in writing by the BLM that the Operator's obligations to the BLM, for which
<br />this warranty is executed. Have been satisfied and, until its release, is approved by the Board.
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