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- 2 - <br />4) Financial Warranty: The Prospective Successor must provide Financial Warranties sufficient to <br />cover the cost of completing reclamation in compliance with the Permit, the Applicable Act and <br />Rules. See C.R.S. §§ 34 -32 -119 and 34- 32.5 -119. In order to ensure the adequacy of the Financial <br />Warranties, the Division must recalculate the required Financial Warranty whenever it receives an <br />SO Application. Depending upon the state of the operation and the outstanding reclamation work, <br />the Successor may be required to post a higher (sometimes significantly) or lower Financial <br />Warranty than the Permittee currently has in place. <br />The Division must act on all SO Applications within 30 days. See Rule 1.12.1(2)(a). Since the <br />Division typically cannot typically review the amount of the required Financial Warranty within <br />this 30 -day period, applicants have the following two options: <br />Applicants may waive their right to receive a decision within 30 days. If the applicants <br />waive their right to a decision within 30 days, the Division will recalculate the required <br />Financial Warranty before issuing its decision on the Application. As a result, the <br />Prospective Successor will know, prior to becoming Successor, whether the current <br />Financial Warranty is adequate to cover the reclamation liability, or if the Financial <br />Warranty must be increased. In this case, the Prospective Successor must submit the full <br />Financial Warranty as part of the Application. <br />Applicants may decide not to waive their right to a decision within 30 days. If the <br />applicants choose not to waive their right to a 30 -day review, the Division will review the <br />Financial Warranty after issuing its decision on the Application. In this case, the <br />Prospective Successor must submit a conditional replacement Financial Warranty in the <br />amount of the Permittee's current Financial Warranty as part of the Application. <br />If the Application is approved, the Division will conduct an inspection within 60 days to <br />assess the amount of the reclamation liability. If the inspection reveals that the reclamation <br />liability exceeds the amount of the conditional replacement Financial Wrranty, the <br />Successor must submit the difference within sixty days. Failure to meet this deadline may <br />result in an enforcement action. If the inspection reveals that the reclamation liability is <br />less than the conditional replacement Financial Warranty, the Operator may request a <br />Financial Warranty reduction for release of the difference. <br />It is the applicants' right to receive a decision on their complete Application within 30 days. The <br />applicants are free to choose whichever option they decide is best. Permittee and prospective <br />Successor must designate their decision on the attached Application Form. <br />5) Demonstration of Legal Right to Enter: All Permittees must provide a description of the basis <br />for legal right of entry to the site and to conduct mining and reclamation. See Rules 6.3.7 and <br />6.4.14. To comply with this requirement, the Prospective Successor must demonstrate that <br />he /she /it has obtained a legal right of entry from any and all surface and mineral rights owners in <br />the affected lands, independent of the current Permittee. See Rules 6.3.7, 6.4.14, and 1.6.2(1)(e)(i). <br />