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feff6ns <br />and Associates, Inc. <br />Water Resource, Environmental, and Mining Engineering <br />August 13, 2015 <br />Mr. Chris Hanks, Chief Environmental Coordinator <br />Cripple Creek & Victor Gold Mining Co. <br />P.O. Box 191 <br />100 N. Third Street <br />Victor CO 80860 <br />Re: Warranty Calculations for Removal c f Power Poles and Power <br />Lines in the Squaw Gulch Area <br />Dear Chris — <br />I have calculated the probable cost for demolition and removal of sixteen additional power <br />poles in the Squaw Gulch area. The calculations are based on an actual cost for pole removal in <br />2010 escalated to 2015. The 2015 escalated cost is $497.22 per pole. In 2014 that number was <br />checked against Means 2014 Building Construction Cost Data which listed a cost of $478. <br />The costs for removal are as follows, including the DRMS Administrative Fees. <br />Item Size Quantity Cost/Unit Total Cost Source <br />Means 2014 <br />Removal of <br />High Voltage <br />2010 <br />Electrical 16 497.22 ea. 7,956 Actual Cost <br />Power Poles Supply Lines Escalated to <br />2015 <br />DRMS Administrative Fee 22.55% 1,794 <br />Grand Total Demolition Cost 9.750 <br />Please contact me at the Email Address shown on the letterhead if you have questions about the <br />costs or require additional details. Thank you. <br />Sincerely, <br />r <br />Steven D. Steffens, P.E. <br />Steffens and Associates, Inc. <br />PO Box 17778 Golden CO 80402 <br />303.378.8181 - E-mail: steffensinc@msn.com