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'NA STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources 44 <br />1313 Sherman St., Room 215 <br />COLORADO <br />Denver, Colorado 80203 <br />t ON OF <br />Phone: (303) 866-3567 FAX: (303) 832-8106 SAFETY <br />PERFORMANCE WARRANTY <br />Permittee: KrauthCo Inc <br />Operation: J&J Stone Pit #1 <br />Permit No: M-2011-004 <br />This form has been approved by the Mined Land Reclamation Board pursuant to sections 34-32-117, C.R.S., <br />of the Mined Land Reclamation Act and 34-32.5-117, C.R.S., of the Colorado Land Reclamation Act for the <br />Extraction of Construction Materials. Any alteration or modification of this form, without approval by the <br />Board shall result in the financial warranty being invalid and result in the voiding of any permit issued in <br />conjunction with such invalid financial warranty and subject the operator to cease and desist orders and civil <br />penalties for operating without a permit pursuant to sections 34-32-123, C.R.S., of the Mined Land <br />Reclamation Act and 34-32.5-123, C.R.S., of the Colorado Land Reclamation Act for the Extraction of <br />Construction Materials. <br />KNOW ALL MEN BY THESE PRESENTS, THAT: <br />WHEREAS, the Colorado Mined Land Reclamation Act, C.R.S. 34-32-101 et sec l. (the "Act"), as <br />amended, and the Colorado Land Reclamation Act for the Extraction of Construction Materials, <br />C.R.S. 34-32.5-101 et sec . (the "Act"), as amended, provides that no permit maybe issued under the Act until the <br />Mined Land Reclamation Board (the "Board") receives a performance warranty (or warranties) that is a written <br />promise to comply with all applicable requirements of the Act. <br />WHEREAS, KrauthCo Inc (the "Permittee"), has applied for a permit to conduct a mining operation <br />known as J&J Stone Pit #1 (the "Operation") on certain lands in Fremont County, Colorado. These lands are <br />described in the permit application, as amended and supplemented, and are referred to herein as the "Affected <br />Lands". <br />WHEREAS, in its application for the permit, the Permittee has agreed to be bound by all requirements of <br />the Act and all applicable rules and regulations of the Board, as amended from time to time. <br />WHEREAS, the Board has determined, in accordance with the Act, that the estimated costs of <br />reclamation with regard to those affected lands in Fremont County which are now or may become subject to the <br />permit are those amounts for the stated periods of time as set forth in the financial warranty, which may be <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines