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DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX (303) 832 -8106 <br />Operator: <br />Operation: <br />Office of <br />Mined Land Reclamation <br />Blattner Energy, Inc. <br />Higgins Pit II <br />Permit No: M - 2012 - 013 <br />KNOW ALL MEN BY THESE PRESENTS, THAT: <br />PERFORMANCE WARRANTY <br />STATE OF COLORADO <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />RECEIVED <br />JUL 2 5 2012 <br />Division of Reclamation, <br />Mining & Safety <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 in valid financial 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 />WHEREAS, the Colorado Mined Land Reclamation Act, C.R.S. 34 -32 -101 et seq. (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 seq. (the "Act "), as amended, provides that no permit may be 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, Blattner Energy, Inc. (the "Operator "), has applied for a permit to <br />conduct a mining operation known as Higgins Pit I I (the "Operation ") on certain <br />lands in Li ncol n 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 Lincoln County which are now or may become <br />subject to the permit are those amounts for the stated periods of time as set forth in the financial warranty, which <br />may be amended from time to time to reflect revised estimates of said costs of reclamation. <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />