2011-05-12_REVISION - M1986079 (7)

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_3_ 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 reclamation and to comply in all respects with the permit and with applicable laws and regulations governing reclamation, eventhough theactual cost thereof maysubstantially exceed the amount of this Financial Warranty. The Warrantor shall not be liable under this Financial Warranty for an amount greater than the sum designated herein, unless increased by a later amendment to this Financial Warranty. This Financial Warranty shall be reviewed by the Board from time to time, and the Board may require an increase in the principal sum of this Financial Warranty (and a corresponding increase in the surety amount) to cover increases in the estimated costs ofreclamation, but no such increase shall bind the Warrantor unless and until it shall have consented thereto in writing by the issuance ofan additional Financial Warranty or by an endorsement to this Financial Warranty. The Warrantor reserves the right to cancel this Financial Warranty, effective only upon an anniversary date, and only by giving written notice to that effect, ;railed by Certified ifail, at least ninety (9vvv) days prior to such anniversary date, addressed to both the Operator at its address herein stated, and to the Board at the address herein stated. In the event ofsuch cancellation, this Financial Warranty shall nevertheless remain in full force and effect as respects the reclamation of all areas disturbed prior to the effective date of such cancellation, unless and until the Operator shall file a substitute Financial Warranty which: (1) assumes liability for all reclamation obligations which shall have arisen at anytime whilethis Financial Warranty is in force, and (2) is accepted in writing by the Board. In the event of such cancellation, if the Financial Warranty is not fully released, the amount of the continuing Financial Warranty available for the reclamation of areas disturbed and unreclaimed at the date of cancellation shall be fixed by the Board at the amount it determines necessary to complete such reclamation (which amount may not exceed the sum designated herein) and the Board shall concurrently identify such areas in writing, and notify the Warrantor and the Operator thereof: Thereafter, the obligation of the Warrantor shall be limited to reclamation of the areas so identified. The consideration for the Warrantor's execution of this agreement is the promise of the Operator to pay the premiums, but failure by the Operator to pay such premiums shall not invalidate or diminish the Warrantor's obligation hereunder. The Board may make demand upon the Warrantor for payment hereunder if the Board determines that reclamation which ought to have been performed by the Operator, or its successors or assigns, remains unperformed, and if Financial Warranty forfeiture procedures required by law have been initiated. No otber condition precedent need be fulfilled to entitle the State to receive the amount so demanded. However, if, upon completion ofreclamation by the State, the amounts expended for reclamation shall be less than the amount received from the Warrantor, the excess shall be, promptly refunded to the Warrantor. If demand is made upon the Warrantor for payment of an amount due to the Board hereunder, and if the Warrantor fails to make payment of such amount within ninety (90) days after the date of receipt of such demand, or if it should thereafter be determined, by agreement ofthe Warrantor or by final judgment of court, that the amount demanded was properlypayable, the Warrantor agrees to pay to the Board, in addition to the amount demanded, interest at the prime rate in effect from time to time at The United Bank of Denver for the period commencing at the end of such ninety-day period and ending on the date of actual payment. If the Board shall notify the Warrantor that the Operator is in default, and if the Board shall initiate any Financial Warranty forfeiture procedures required by law or regulation, the Warrantor may, in lieu of making payment to the Board of the amount due hereunder, cause the reclamation to be timely performed in accordance with all requirements of the Act and all applicable rules and regulations. In such event, when and if the reclamation has been timely performed to the satisfaction of the Do&d or Division, Us pirlandaI gai'raniy LAI be T811eaS4;J- If the ?culawaticja shall not be so pei ortned to the satisfaction of the Board or Division, Us Financial Warranty shall remain in full force and effect. This Financial Warranty shall be subject to forfeiture whenever the Board determines that anyone or more of the following