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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 />December 22, 2015 <br />To: Robin Reilley <br />From: Jason Musick <br />RE: Carbon Junction Mine, C-1992-080 <br />2015 Midterm Review RCE Memo <br />Per your request, attached is the reclamation cost estimate for the 2015 Carbon Junction Mine Midterm <br />Review. The Division updated the RCE during Midterm Review No. 4 in January 2011. The amount of <br />bond required at that time was estimated to be $381,835.00. Subsequently, the Division approved the SL - <br />4 bond release application for Phase I and Phase II for the entire site. The SL -4 approval reduces the <br />required liability by the 85% limit in accordance with Rule 3.03.1(2)(b). The remaining liability for the <br />Carbon Junction Mine was calculated to be $112,165.00. <br />The Division updated the reclamation cost estimate with costs updated in October 2014 to reflect 2014 <br />CRG, Means and CDOT rates, no updates to the Divison's cost have been made since that date. This <br />updated estimate total is $89,351.29. No new reclamation tasks have been included since the estimate <br />was last updated with the Permit Renewal No. 4 (RN4) updated the costs for the entire site. The <br />remaining liability of the site includes revegetating the disturbed lands, sealing of monitoring wells, site <br />maintenance, and mobilization of equipment costs. <br />Although the total cost the Division would assume should the site require reclamation by the Division is <br />$89,351.29, Rule 3.03.1(2)(b) requires the Division to only release up to 85% of the total liability. As <br />such, the required liability for the Carbon Junction Mine is $112,165.00 which is more than the total cost <br />estimated for reclamation. The Division currently holds a financial warranty in the amount of <br />$112,165.00. No addition[ bond is required. <br />Attached: CIRCES Cost Estimate, Carbon Junction Mine, 2015 Midterm Review, C-1992-080 <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 />