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I. EXCAVATION/RECLAMATION SCHEDULE: The reclamation plan shall show the phases of excavation. Reclamation on one phase of an excavation shall be initiated prior to the start of the next excavation phase. The final reclamation of any phase of excavation shall be completed within two years of the commencement of the reclamation process. Excavation shall be limited so that at any point of time a maximum of one phase is being reclaimed while one phase is being excavated. (Development Title Section 9-1415.3[0]) m. TIME LIMITATION: The Quarry Excavation Permit shall remain in effect as long as the excavation continues in compliance with the approved Permit. (Development Title Section 9-1415.3[p]) (1) Phase I excavation shall be completed by 2007, and reclamation shall be completed by 2009. (2) Phase II excavation shall be completed by 2009, and reclamation shall be completed by 2011. (3) Phase III excavation shall be completed by 20013, and reclamation shall be completed by 2015. n. 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]) o. 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 the 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 Conditions of Approval -3- PA-02-370