2016-02-25_REVISION - C1981008 (2)

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Name of Addressee Page 2 Date Task 094 - The costs associated with the reconstruction of a portion of the BB road and 2700 road were a part of the SL -13 and should have been removed with the approval of SL -13. As such, the costs will be removed via SL -17. Task 094 will be removed from the RCE. Task 095 - The costs associated with the reconstruction of a portion of the BB road and 2700 road were a part of the SL -13 and should have been removed with the approval of SL -13. As such, the costs will be removed via SL -17. Task 095 will be removed from the RCE. Task 100 - The maintenance cost associated with rill and gully repair and road maintenance has been reduced to only include the maintenance of rill and gully repair. Task 100 will remain in the cost estimate. Based on a review by the Division, revised numbers are noted in bold. In addition to the costs associated with the SL -17 bond release application, the Division previously determined that the required liability for TR -69 was inadvertantly omitted from the 2015 Midterm Review cost estimate and the total of $9,585.90 associated with TR -69 should have been added to the required liability amount with SL -17. Based on the Division's review, a determination was made to include the TR -69 liability with the total costs prior to the SL -16 approval. As such, the $9,585.90 amount associated with TR -69 has been included in the pre -SL -16 amount and thus included by addition to this SL -17 RCE. With the 2015 Midterm Review and all associated revision approvals prior to the SL -17 RCE, the Division determined that costs to complete remaining reclamation associated with the New Horizon Mine were $5,441,945.85. After adjusting the RCE to account for tasks completed under the yet to be approved SL - 16, the Division determined the costs to complete remaining reclamation to be $4,987,568.97. Per Rule 3.03.1(2), the Division can only release $437,532.45 of the original $5,441,945.85 with the approval of SL -16. As such, the Division has determined that the remaining liability at the New Horizon Mine to be $5,004,413.40 once the SL -16 application is approved. Based on the Division's SL -17 RCE, the costs to complete remaining reclamation associated with the New Horizon Mine is $5,074,833.71. This amount is $367,112.14 lower that the current required surety based on the 2015 Midterm Review plus the costs associated with any associated revision approvals. The majority of the costs associated with the reduction are noted above. If the SL -16 application is approved prior to the SL -17 application, the costs to complete remaining reclamation associated with the New Horizon Mine would be $4,637,301.26. This amount is $367,112.14 lower that the current required surety based on the approval of SL -16. The majority of the costs associated with the reduction are noted above. Please let me know if you have any questions.