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<br />. <. <br /> <br />Attachment 2 <br /> <br />Method to Estimate the Inflated Reimbursement Cap <br /> <br />. <br /> <br />PURPOSE: <br /> <br />To outline a method for estimating the potential overall project cost and repayment in <br />order to facilitate administration of escrow accounts and payments under the up-front <br />cost-share agreements. Actual repayment will be based on the fmal cost allocation, after <br />application of applicable tests. <br /> <br />SECTION 207 LANGUAGE. AS AMENDED: <br /> <br />Section 207 limits the non-tribal r~~y!!!ent obligation to $43 million for the $500 million <br />project (10/03 prices). The language, as amended, results in: <br />No repayment of the $163 million of cost increases <br />No repayment of the effects of inflation on the $163 million of cost increases <br />Implies repayment on the effects of inflation on the $337 million ($500 <br />million - $163 million), which implies some inflation of the reimbursement <br />cap. <br /> <br />METHOD: <br /> <br />A simple method of calculating repayment of the current indexed project ($522 million <br />@ 10/05 prices) is: <br /> <br />. <br /> <br />$43 million (Original Reimbursement Cap) <br />$500 million (CCE @ 10/03) <br /> <br />Inflated Reimbursement Cap (tV, 10/05 <br />$522 million @1O/05 <br /> <br />Inflated Reimbursement Cap @ 10/05 prices = $44,892,000 <br /> <br />. <br />