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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 COLO <br />ADO. <br />Phone: (303) 866-3567 R <br />D I VI S I N C F <br />MIN <br />A <br />L S <br />FAX: (303) 832-8106 <br />E <br /> GEOL <br />OG <br />Y <br /> RECLAMATION-MINING <br /> SAFETY-SCIENCE <br /> PERFORMANCE WARRANTY <br /> Bill Owens <br /> Governor <br /> Russell George <br /> Executive Director <br /> <br />Operator: Lowell Klinglesmith and Lenny Klinglesmith Ronald W. Cattany <br />Division Director <br /> Natural Resource Trustee <br />Operation: K-Bar-T Pit <br />Permit No: M-1978-221 <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 invalidfinancial 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 M. (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 M. (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, Lowell Klinglesmith and Lenny KlingttWe??t erator"), has applied for a permit <br />to conduct a mining operation known as x--Bar-T Pit ?Up (the "Operation") on certain <br />lands in Rio Blanco County, Colorado. These lands are described in the permit application, as <br />amended and supplemented, and are referred to herein as the "Affected Lands". <br />WHEREAS, in its application for the permit, the Operator 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 Rio Blanco County which are now or may <br />become subject to the permit are those amounts for the stated periods of time as set forth in the financial <br />warranty, which may be amended from time to time to reflect revised estimates of said costs of reclamation. <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Survey