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3) Performance Warranty Form: The party wishing to become Successor ( "Prospective <br />Successor ") must agree to assume all Liability for the reclamation of affected land, and <br />must provide a Performance Warranty covering the same. See C.R.S. §§ 34 -32 -119 <br />and 34- 32.5 -119. A Performance Warranty Form is included in this Application <br />Packet. The Performance Warranty Form must bear the original notarized signature of <br />an authorized representative of the Prospective Successor. <br />4) Financial Warranty: The Prospective Successor must provide Financial Warranties <br />sufficient to cover the cost of completing reclamation in compliance with the Permit, <br />the applicable Act and Rules. See C.R.S. §§ 34 -32 -119 and 34- 32.5 -119. In order to <br />ensure the adequacy of the Financial Warranties, the Division must recalculate the <br />required Financial Warranty whenever it receives an SO Application. Depending upon <br />the state of the operation and the outstanding reclamation work, the Successor may be <br />required to post a higher (sometimes significantly) or lower Financial Warranty than <br />the Permittee currently has in place. <br />The Division must act on all SO Applications within 30 days. See Hard Rock and <br />Construction Materials Rule 1.12.1(2)(a). Since the Division cannot typically review <br />the amount of the required Financial Warranty within this 30 -day period, applicants <br />have the following two options: <br />Applicants may waive their right to receive a decision within 30 days. If the <br />applicants waive their right to a decision within 30 days, the Division will <br />recalculate the required Financial Warranty before issuing its decision on the <br />Application. As a result, the Prospective Successor will know, prior to <br />becoming Successor, whether the current Financial Warranty is adequate to <br />cover the reclamation liability, or if the Financial Warranty must be increased. <br />In this case, the Prospective Successor must submit the full Financial Warranty <br />as part of the Application. <br />Applicants may decide not to waive their right to a decision within 30 days. If <br />the applicants choose not to waive their right to a 30 -day review, the Division <br />will review the Financial Warranty after issuing its decision on the Application. <br />In this case, the Prospective Successor must submit a conditional replacement <br />Financial Warranty in the amount of the Permittee's current Financial Warranty <br />as part of the Application. <br />If the Application is approved, the Division will conduct an inspection within <br />60 days to assess the amount of the reclamation liability. If the inspection <br />reveals that the reclamation liability exceeds the amount of the conditional <br />replacement Financial Warranty, the Successor must submit the difference <br />within sixty days. Failure to meet this deadline may result in an enforcement <br />action. If the inspection reveals that the reclamation liability is less than the <br />conditional replacement Financial Warranty, the Successor may request a <br />Financial Warranty reduction for release of the difference. <br />2 <br />