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i r. ANNUAL INSPECTION REPORTS: Annual inspections of the excavation shall be conducted by the County to ensure compliance with the conditions of the permit and the reclamation plan. The County may use professional services as provided for in Section 9-240.11. The consultant shall be selected by San Joaquin County. Upon completion of the annual inspection,the person in charge of the mining operation shall submit to the State Geologist and the County a report which shall contain all the information as required by Section 2207 of the Public Resources Code. The cost of the inspection shall be paid by the mine operator. Additional inspections may be conducted, but the cost of additional inspections shall be paid for by the mine operator only if non-compliance with the conditions of the Quarry Excavation Permit or the reclamation plan is found. (Development Title Section 9-1415.3[q]) s. PERFORMANCE GUARANTEE: In order to ensure reclamation of the site, compliance with conditions of approval, and compliance with County and State mining regulations,the applicant shall provide performance guarantees as a condition of the issuance of the Quarry Excavation Permit. The amount and form of the guarantee shall be subject to annual review and approval by the County and the State, and the amount shall be adequate to ensure reclamation of disturbed land and/or land to be disturbed during a given phase. The annual review of the financial guarantee shall be coordinated with the annual inspection and approval of successive reclamation security so that the guarantee includes the amount of disturbed land plus the amount of land estimated to be disturbed during the next 12 months, less the amount of land previously determined by Development Services Division's annual inspection to have been reclaimed. The performance guarantee shall be in the form of either(1)a surety bond, (2)a trust fund with the lead agency, or(3)an irrevocable letter of credit. Any interest accrued in a trust fund shall stay with the trust fund account. The financial guarantee shall be payable to"San Joaquin County or the Department of Conservation" under the applicable provisions of the County and the State mining regulations. The financial guarantee shall be callable by the County or the State under the following circumstances: (1) The applicant causes the excavation to become idle(as defined in Section 9-110 of the Development Title)without an approved interim management plan; (2) The applicant files for bankruptcy; (3) The County or State determines on the basis of annual inspections and reports that the applicant has not maintained substantial compliance with the approved Permit; (4) There arises an occurrence or circumstance which, in the opinion of the County or State, jeopardizes the site reclamation;or (5) The State makes one or more of the findings specified in Section 2774.4(x)of the State Public Resources Code In any instance that the County or State makes the demand for partial or full tender of the financial guarantee of performance, the County and/or State may use all or any portion of the financial guarantee to reclaim the site and to recover its administrative costs associated therewith. (Development Title Section 9-1415.3[r]) t. ENFORCEMENT: Except as otherwise provided in State Mining Regulations, the County shall have authority to enforce provisions of the Surface Mining and Reclamation Act. The County may exercise all enforcement regulations available under the County Development Title and the State Public Resources Code. Such enforcement measures include charging the applicant the costs of administering an enforcement action. The basis for charging fees for an enforcement action shall be a time and materials compensation. (Development Title Section 9-1415.3[tl) u. GROUNDWATER CONDITIONS: The excavation shall not extend below the groundwater. (Development Title Section 9-1415.3[u]) Revised Conditions -4- PA-02000182 ' I