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Rick Miller <br />Page 2 of 3 <br />May 15, 2014 <br />EXHIBIT L - Reclamation Costs (Rule 6.4.12): <br />The permittee has requested that the Division calculate the appropriate reclamation cost for this <br />site. Using the current permit information, and the information in the conversion application, two <br />estimates were prepared as part of the adequacy review. The permittee will need to select which <br />scenario they wish to use and submit bond for, as well as commit to adhering to that scenario as an <br />enforceable condition of the permit. <br />Bond Scenario 1) - Operator mines the pit to a final slope of 3:1 or flatter. The bond for <br />this scenario is calculated at $30,100. This amount is a modification of the current bond <br />calculation to account for the additional acreage and updated costs and includes: the <br />operator's supplied estimate for replacement of topsoil to a depth of 6" (assuming the <br />topsoil stockpile is within 250' of the final location), DRMS costs for seeding with the <br />approved seed mix, operator's supplied cost for mob /demob, and DRMS indirect costs. <br />Scenario 1 does not include cost to rebuild slopes mined to steeper than 3:1. <br />Bond Scenario 2) - Operator mines pit walls to near vertical with no more than 1000 feet <br />of "high- wall" at a depth of 20 feet below native surface. The bonding cost for this <br />scenario is calculated at $58,800. The extra cost associated with this option is a result of <br />the cost of re- sloping 1000 feet of pit wall to a final 3:1 slope before the top soil is replaced. <br />This estimate also assumes that the material needed to rebuild the slopes is located within <br />75' of the slope (cut/fill). If material needs to be brought in to rebuild the slope, the <br />reclamation cost would increase significantly. High -wall on -site in excess of 1000 feet in <br />length or taller than 20 feet will also obviously increase the required reclamation bond. <br />Conversely, if the operator wishes to commit to less than 1000 feet of high -wall at any time <br />one site as an enforceable condition of the permit, the bond amount would be lower. <br />Please note that the reclamation plan and map as submitted states that the final slope of the pit will <br />be 4:1. If the operator chooses Scenario 1 and mines to a 4:1 slope, the bonding cost will remain <br />the same, however, if the operator chooses Scenario 2 and commits to re -slope the pit walls to a 4:1 <br />final slope the cost will increase due to the additional material needed to achieve the flatter slope. <br />The operator may wish to consider revising all conversion text and maps as needed to achieve final <br />reclaimed slopes of "3:1 or flatter" in order minimize reclamation costs. <br />Additional Information: You will also need to provide the Division with proof of notice to <br />surrounding property owners within 200 feet of the affected area, and proof of public notice <br />publication. Any letters from other commenting agencies /entities received by the Division to date <br />have been included with this correspondence for you to review. <br />This concludes the Division's preliminary adequacy review of this application. This letter shall not <br />be construed to mean that there are no other technical deficiencies in your application. Other <br />issues may arise as additional information is supplied. Please remember that the decision date for <br />this amendment application is July 28, 2014. As previously mentioned, if you are unable to <br />