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Name of Addressee <br />Page 2 <br />Date <br />Task 053B - 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 />Based on the Division's SL -16 RCE, the costs to complete remaining reclamation associated with the New <br />Horizon Mine is $4,977,983.07. This amount is $454,376.88 lower that the 2015 Midterm Review RCE. The <br />majority of the costs associated with the reduction are noted above. Typically, the Division does not <br />release costs associated with the replacement of topsoil until the area has achieved Phase II bond release; <br />however, in the case of SL -16, the Division determined that the area associated with SL -16 would not <br />meet the requirments of backfilling, regrading, and AOC without the topsoil in question. As such the SL - <br />16 RCE could remove the topsoil replacement tasks; however, as noted below, liability of the tasks can <br />not be released per Rule 3.03.1(2), as such, the task will remain until Phase II release. <br />Although the SL -16 RCE is $454,376.88 lower than the 2015 Midterm Review RCE, the Division can not <br />approve the full release of $454,376.88 per Rule 3.03.1(2). Based on the total disturbed area reported in <br />the 2014 ARR of 801.96, the 107.8 acres that are requested for Phase I bond release make up <br />approximately 13.4% of the total disturbed area. Per Rule 3.03.1(2), the Division can release up to 60% of <br />the entire bond amount for Phase I release. 60% of $5,432,359.95 is $3,259,415.97. The total amount <br />that the Division can release per Rule 3.03.1(2) is $436,761.74 (13.4% of 60%). <br />With the 2015 Midterm Review, the Division determined that costs to complete remaining reclamation <br />associated with the New Horizon Mine were $5,432,359.95. After adjusting the RCE to account for tasks <br />completed under SL -16 the Division determined the costs to complete remaining reclamation to be <br />$4,977,983.07. Per Rule 3.03.1(2), the Division can only release $436,761.74 of the original $5,432,359.95 <br />with the approval of SL -16. As such, the Division has determined that the remaining liability at the New <br />Horizon Mine to be $4,995,598.21. <br />Please let me know if you have any questions. <br />