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COLORADO <br />Division of Reclamation, <br />Mining( and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />November 19, 2015 <br />To: Brock Bowles <br />From: Jason Musick <br />RE: New Horizon Mine, C-1981-008 <br />SL -16 RCE Memo <br />Per your request, attached is the reclamation cost estimate for the 2015 New Horizon Mine Bond Release <br />Application No. 16 (SL -16). The Division updated the reclamation cost estimate with costs updated in <br />October 2014 to reflect 2014 CRG, Means and CDOT rates. This updated estimate total was <br />$5,432,359.95. This estimate includes reclamation tasks identified in the permit and includes costs for <br />Technical Revisions 63, 64, 65 and Minor Revision No. 90, which reflect the only revisions that included an <br />increase in liability since the estimate was last updated with the 2013 Bond Release No. 13 (SLI 3). SL13 <br />updated the costs for the entire site. <br />When determining the amount of liability that can be released based on the SL -16 application, the <br />Division updated the cost estimate for the entire mine site based on costs updated with the 2015 Midterm <br />review as noted above and the tasks that could be removed based on work acomplished and requested to <br />be released. Below are a list of tasks that have been revised or removed based on the SL -16 application. <br />Task 002 - The overall length of Cut 96 has been reduced from 3,348' to 1,748' (the length of the area on <br />the Morgan property) volume reduced to 56,971 LCY <br />Task 002B - The overall length of Cut 96 has been reduced from 3,348' to 1,748' (the length of the area <br />on the Morgan property) volume reduced to 48,555 LCY <br />Task 003 - The overall length of Cut 96 has been reduced from 3,348' to 1,748' (the length of the area on <br />the Morgan property) volume reduced to 249,640 LCY <br />Task 009 - The acres to be regraded reduced from 468.60 to 360.8 (less 107.8 ac of Phase 1) <br />Task 021 - Removed Pond 11 dewatering structure <br />Task 030A - Topsoil placement on the Morgan property falls under Phase I due to the requirement to meet <br />AOC. Task to remain in RCE until Phase 11 <br />Task 030B - Topsoil placement on the Morgan property falls under Phase I due to the requirement to meet <br />AOC. Task to remain in RCE until Phase 11 <br />Task 030C - Topsoil placement on the Morgan property falls under Phase I due to the requirement to meet <br />AOC. Task to remain in RCE until Phase II <br />Task 045B - Topsoil placement on the Morgan property falls under Phase I due to the requirement to meet <br />AOC. Task to remain in RCE until Phase II <br />Task 053 - Removed. Pond 011 was permitted to be removed and the area falls under SL -16 Phase I <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http://mining. state. co. us <br />John W. Hickenlooper, Governor I Mike King, Executive Director I Virginia Brannon, Director <br />