2011-03-16_REVISION - M2001001 (7)

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-3- 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. 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 cnay substantially exceed the amount of this Financial Warranty. This Financial Warranty shall be subject to forfeiture whenever the Board determines that anyone or more ofthe following circumstances exist: 1. .A Cease and Desist Order entered pursuant to Section 34-32-124 ofthe 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 Operator has failed to maintaiii:its Financial Warranty in good standing, as required by the Act;. or 4.. The Operator 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 Operator shall receive all such interest: The Operator may, from time to time, withdraw a Certificate of Deposit which is assurance hereunder ifand. 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 simultaneously deposited as assurance hereunder in the same amount as the Certificate withdrawn.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., 228.13, then the Operator,, 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 agrees 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 tliis Warranty is executed, have been satisfied, and until the financial warranty has been released by the Board. If this Financial Warranty applies to lands under the jurisdiction of the State Board of Land Commissioners ("band Board"), and if this Financial Warranty, in whole or in part, is accepted by the Land Board as the bond required under its applicable law and procedures, then the Operator, 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 and by the Land Board, hereby agrees.that, notwithstanding any other provision hereof, or of law, this Financial 'N"al-rauly shall remain in full force and effect until the Board is notified in writing by the Land Board that the Operator's obligations to the Land Board, for which this Warranty is executed, have been satisfied, and until the financial warranty has been released by the Board.