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Marcia Talvitie
<br />Page 2of 6
<br />March 16, 2015
<br />a. The maximum release amount for SL-2 is based on the $6,879,590.12 RN-4 total. With SL-2,
<br />Phase I release for the West Mine, the Division granted Phase I release on 13.1 acres. The
<br />release amount should have been $473,210.85 (74.43% of 60% of thRN-4 liability
<br />for the West Mine -(.6x$1,059,606.98=$635,764.19); ($635,764.19 x .7443 = $473,210.
<br />the Division approved the release of $709,004.00.
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<br />b. With SL-2 and SL-4, Phase I release on portions of the East Mine, the total relea
<br />should have been $1,204,977.68 (71.38% of 60% of the original RN-4 liability (.6 x
<br />$2,813,527.78 = $1,688,116.67); (.7138 x $1,688,116.67 = $1,204,977.68). To date the
<br />Division has released $1,713,346.70 under the SL-3 and SL-4 Phase I approvals.
<br />c.With SL-4, in addition to the minimum required to be held based on the R-4 liability, the
<br />Division should have included all of the remaining $118,677.31 in liability increases for
<br />minor revisions and technical revisions approved since RN-4.
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<br />d. As shown in the tables below, after approval of SL-5and in consideration of the releases
<br />previously approved, the Division should retain a minimum of $3,267,292.46. The current
<br />required performance bond for the Bowie No. 1 Mine is $3,349,562.61. Accordingly, the
<br />proposed release amount for SL-5 would be $172,270.15.
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<br />The reclamation cost estimate for the remaining reclamation taskks for which liability
<br />has not been released) was recalculated at current costs. The e
<br />site, based on remaining liability for all tasks not released th-5, is $2,199,283.16.
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<br />Of those tasks from the original estimate pertaining to the West Mine and ROM areas, the Division
<br />determined the following:
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<br />3. Task 17, the original backfilling/grading costs for the OVWM benas $461,066 (RN-4
<br />estimate). Costs for regrading the vent shaft will be proposed for release under SL-5. A
<br />portion of Task 17 (lower bench and road, 2,823 cu yds) and Tasks 96 and 96a to backfill and
<br />regrade the W1 and W2 ponds will remain in the estimate since Phase I release has not been
<br />granted, and the area (3.5 acres) will be redisturbed when the ponds are reclaimed. The
<br />previous reclamation cost estimate (SL-4) had inadvertently omitted regarding costs for Pond
<br />W-1; the costs have been restored in the SL-5 reclamation cost estimate.
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<br />4. Task 33, West Mine road compaction can be removed from the estimate and the associated
<br />costs released. This cost should have been removed under SL-2, when Phase I bond release
<br />was granted for the road disturbance. Liability for Task 33 will be proposed for release under
<br />SL-5.
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