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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />D <br />f N <br />l <br />E I " <br />epartment o <br />atura <br />Resources , <br />R <br />1313 Sherman St„ Room 215 COLORADO <br />Denver, Colorado 80203 (? <br />C 0 5 2005 I S I O N O F <br />Phone: (303) 866-3567 DE A LS <br />' <br />FAX: (303) 832-8106 GEOLOGY <br /> Division of Minerals and Geology <br /> RECLAMATION•M 11' <br /> SAFETY-SCIENCE <br />FINANCIAL WARRANTY <br /> Bill Owens <br />CERTIFICATION OF DEPOSIT Governor <br /> Russell George <br /> Executive Director <br /> Ronald W. Cattany <br /> <br />Lowell Klin lesmith and Lenny <br />Operator: g <br />Klin lesmith <br />g Division Director <br /> <br />Natural Resource Trustee <br />Operation: K-Bar-T Pit 9T ! 1 <br />©? <br />Permit No.: M-1978-221 ( <br />Bank: Mountain Valley Bank <br />Street: 400 Main St., P.O. Box 718 <br />City: Meeker <br /> <br />State: CO Zip Code: 81641-0718 <br />Area Code: 970 Telephone: 878-0103 FAX: <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 <br />civil 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. 1973, 34-32-101, et M. (the "Act"), as <br />amended, provides that no permit may be issued under the Act until the Mined Land Reclamation Board (the "Board") <br />receives a Financial Warranty. (or Warranties) as described in the Act. <br />WHEREAS, Lowell Klinglesmith and Lenny Klinglesmith (the "Operator), a <br />N/A corporation, has applied for a permit to conduct a mining operation known as <br />K-Bar-T Pit (the "Operation"), on certain lands in Rio Blanco County, Colorado. <br />These lands are described in the permit application, as amended and supplemented, and are referred to herein as the <br />"Affected Lands." <br />WHEREAS, in the application for the permit, the Operator has agreed to be bound by all requirements of the Act <br />and all applicable rules and regulations of the Board, as amended from time to time. <br />Office of <br />Mined Land Reclamation <br />Office of <br />Active and Inactive Mines <br />Colorado <br />Geological Survey