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<br />This Financial Warranty shall be subject to forfeiture whenever the Board determines that any one or more of the following
<br />circumstances exist:
<br />1. A Cease and Desist Order entered pursuant to Section 34 -32 -124 of the Act has been violated, and the
<br />corrective action proposed in such order has not been completed, although ample time to have done so has elapsed; or
<br />2. The Operator(s) 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 been given; or
<br />3. The Operator has failed to maintain its Financial Warranty in good standing, as required by the Act; or
<br />4. The Operator no longer has the financial ability to carry out its obligations in accordance with the Act.
<br />The description -of Affected Lands herein is for convenience of reference only and no error in such-- description, nor any
<br />revision of the permitted mining area, nor the disturbance by the Operator of lands outside of the permitted mining area
<br />shall alter or diminish the obligations of the Operator and/or the Operator hereunder or under the Deed of Trust, which
<br />shall extend to the reclamation of all such lands disturbed
<br />If this Financial Warranty applies to National Forest System lands, and if this Financial Warranty is accepted by the United
<br />States Forest Service ( "U.S.F.S. ") as the bond required under 36 C.F.R 252.13, then the Operator having requested that
<br />the Board and the U.S.F.S accept this single Financial Warranty in lieu of the separate bonds which would otherwise be
<br />required by applicable law, hereby agrees that, notwithstanding any other provision hereof, or of law, this Financial
<br />Warranty shall remain in full force and effect until U.S.F.S., for which this Financial Warranty is executed, have been
<br />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 Commissioners ( "Land
<br />Board"), and if this Financial Warranty, in whole or in part, is accepted by the Land Board as the bond required under its
<br />applicable law and procedures, then the Operator having requested that the Board accept this Financial Warranty in lieu
<br />of the separate bonds which would otherwise be required by the Colorado Mined Land Reclamation Board or Division and
<br />by the Land Board, hereby agrees that, notwithstanding any other provision hereof, or of law, this Financial Warranty shall
<br />remain in foil force and effect until the Board is notified in writing by the Land Board that the Operator`s obligations to
<br />the Land_Board, for which this FinanciaTWarranty is executed, have been satisfied and, until its release, is approved by
<br />the Board.
<br />If all or any part of the Affected Lands are under the jurisdiction of the Bureau of Land Management, United States
<br />Department of the interior (the "BLM "), and it at the request of the Operator on this Financial Warranty, the BLM has,
<br />pursuant to 43 C.F.R 38 09.1 -9, accepted this Financial Warranty in lieu of requiring a separate reclamation bond payable
<br />to the United States, then, notwithstanding any other provision of this Financial Warranty, or of law, the Operator hereby
<br />agrees that this Financial Warranty shall not be released until the Board is advised in writing by the BLM that the
<br />Operator's obligations to the BLM, for which this Financial Warranty is executed, have been satisfied and, until its release,
<br />is approved by the Board.
<br />Upon termination of this Financial Warranty, or upon the providing of a substitute Financial Warranty approved by the
<br />Board, this Financial Warranty and the Deed of Trust, marked "paid", shall be returned to the Operator, along with a
<br />properly executed request for release of Deed of Trust, and the Public Trustee shall release the Deed of Trust.
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