2005-07-25_GENERAL DOCUMENTS - M1977342 (3)

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-2- NOW �REFOORE, the Operator is held hereby and firmly bound unto the State of Colorado, in the sum of f" " 0 , S `3` f'�""'R's° �y Nhj f Dollars ($ 1 ••-- •6 96 a 6 AL iS ) for the period of time from 76+s XeN� s,xt �,vo 3 �� a-- .- -- ----- to , for the payment of which sum, well and truly made, the Operator hereby binds itself, its representatives, successors and assigns, jointly and severally, firmly by these presents, which obligation ind is represented by this Financial Warranty and Deed of Trust. The Board may, for good cause shown., increase or decrease the amount and duration of this Financial Warranty and the Deed of Trust. The Operator shall have sixty (60) days after the date of notice of any such adjustment to fulfill all new requirements. The principal sum of this Financial Warranty shall be amended in writing to reflect the revised amount of this Financial Warranty, and the Deed of Trust shall be similarly amended. The Operator shall notify the Board immediately of any event which may impair this Financial Warranty. 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 the Act for the purpose of determining whether impairment has occurred. The State may exercise its rights under this Financial Warranty and the Deed of Trust and foreclose for the principal sum Of $ �� 061.3 S , as previously set forth in this Financial Warranty, plus interest and allowable costs of foreclosure, in accordance with the terms thereof and in accordance with applicable provisions of law, if the Board determines that this Financial Warranty shall be subject to forfeiture on account of existence of any one or more of the circumstances hereinafter set forth. No other condition precedent need be fulfilled to entitle the State to foreclose upon the Deed of Trust, but before instituting foreclosure proceedings, demand in writing shall be made upon the Operator. If, upon completion of reclamation by the Board, the amounts expended for reclamation (together with any amounts payable under the following paragraph) shall be less than the amount received upon foreclosure, the excess shall be promptly refunded to the Operator. If the Board has made a determination of forfeiture on account of any one or more of the circumstances hereinafter set forth, the Operator agrees to pay the State, in addition to the amount demanded, all reasonable costs of collection, including reasonable attorneys' fee and interest on the Financial Warranty which is four percentage points in excess of the average interest rate paid by the United States government on 90-day treasury bills sold at auction or regularly scheduled sale next preceding the date of determination of forfeiture. The obligation of the Operator shall continue until the Board has released this Financial Warrant or has ordered it - - `o�ited�in accordance wit'�i apphcable provisions of the Act. It is understood that periods of years may necessarily be required before determination can be made that reclamation of the Affected Lands has been satisfactorily completed. It is also recognized that, as reclamation is accomplished, the amount of this Financial Warranty may be reduced with the approval of the Board so that it reflects the then current estimated cost of the remaining reclamation of the Affected Lands. No revision, extension, or renewal of the permit, or of the time allowed to complete reclamation, shall diminish the Operator's obligations under this Financial Warranty or under the Deed of Trust. 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 may substantially exceed the amount of this Financial Warranty.