2010-11-02_REVISION - M1985029 (7)

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-3- The amount of this Financial Warranty is based upon estimates as to the cost of reclamation, and does not operate to liquidate, limit, enlarge, or restrict the Operator's obligations to complete the reclamation, even though the actual costs thereof may substantially exceed the amount of this Financial Warranty. This Financial Warranty shall be subject to forfeiture whenever the Board determines that any one or more of the following circumstances exist: 1. A Cease and Desist Order entered pursuant to Section 34-32-124 of the Act has been violated, and the corrective action proposed in such Order has not been completed, although ample time to have done so has elapsed; or 2. The Operator is in default under its Performance Warranty, and such default has not been cured, although written notice and ample time to cure such default has been given; or 3. The Warrantor has failed to maintain its Financial Warranty in good standing, as required by the Act; or 4. The Operator and/or Warrantor no longer has the financial ability to carry out its obligations in accordance with the Act. The description of lands herein is for convenience of reference only, and no error in such description, nor any revision of the permitted mining area, nor the disturbance by the Operator of lands outside of the permitted mining area shall alter or diminish the obligations of the Operator hereunder, which shall extend to the reclamation of all such lands disturbed. Interest on Certificates of Deposit shall not be credited to the Certificate of Deposit. The Warrantor shall receive all such interest. The Operator and/or Warrantor may, from time to time, withdraw a Certificate of Deposit which is assurance hereunder if and to the extent that a substitute Certificate of Deposit is simultaneously deposited as assurance hereunder in the same amount as the Certificate withdrawn. If this Financial Warranty applies to National Forest System lands, and if this Financial Warranty is accepted by the United States Forest Service ("U.S.F.S.") as the bond required under 36 C.F.R, 252.13, then the Operator and Warrantor, having requested that the Board and the U.S.F.S. accept this single Financial Warranty in lieu of the separate bonds which would otherwise be required by applicable law, hereby agree that, notwithstanding any other provision hereof, or of law, this Financial Warranty shall remain in full force and effect until U.S.F.S. has advised the Board by written notice that the Operator's obligations to U.S.F.S., for which this Warranty is executed, have been satisfied and, until its release, has been approved by the Board. If this Financial Warranty applies to lands under the jurisdiction of the State Board of Land Commissioners ("Land oar ' , an i is inanci arran , in whole or in part, is accep e by the an oar as the bond d require un er- its applicable law and procedures, then the Operator and Warrantor, having requested that the State accept this Financial Warranty in lieu of the separate bonds which would otherwise be required by the Colorado Mined Land Reclamation Board or Division of Minerals and Geology and by the Land Board, hereby agree that, notwithstanding any other provision hereof, or of law, this Financial Warranty shall remain in full force and effect until the Board is notified in writing by the Land Board that the Operator's o'ligations to the Land Board, for which this Warranty is executed, have been satisfied and, until its release, is approved by the Board.