2014-10-21_REVISION - M1988044 (5)

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TR-07 RECLAMATION COSTS Exhibit L - AMENDMENT 3 - TR-07 Reclamation Costs ASSUMPTIONS AND PARAMETERS: The spreadsheet calculations shown on the pages within this exhibit show the actual values assigned to the various categories in the mining and reclamation process. The calculations are derived from the last bond adjustment which was done in 2012. 1. The 150 acre maximum acreage allowed in the processing plant site,mining areas, soil and overburden stockpiles, and backfilled land that has not been seeded has been removed from the new lease and no longer applies.. 2. The 82.8 acres includes all possible future mining,the current mine pit, the processing plant and adjacent unreclaimed land, and the access road connecting the processing plant and the mining area. The 150 foot wide strip between the future mining area and the power line/water line corridor is included in the bond calculations even though use of this land for soil or overburden stockpiling is not currently allowed(see page 7 in Exhibit D). 3. The 27.8 acres of reclamation land includes the land graded and seeding in summer 2014. This is a slope area and is subject to erosional damages that might need to be repaired. Therefore,the per acre rate is higher than would be the case for near flat land where erosion is not likely to be a problem. 4. The mean cost per acre is derived from the current bond calculations approved in 2012. 5. An inflation factor of 2%has been included to account for inflation since 2012. 6. The same add-on costs the Division includes for mobilization, overhead, and administrative costs are included in the mean cost per acre. In the event these percentages have changed from those shown on the spreadsheet printout then the difference between the old percentages and the new percentages should be added. Estimated Reclamation Cost: $199,036.08 (see calculations on following page) Coal Creek Sand Resource Amendment 3 (2005)-M-1988-044 Exhibit L Page 1