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<br />INTEROFFICE MEMORANDUM <br />TO: ZACH TRUJILLO <br />FROM: JANET BINNS <br />SUBJECT: COLOWYO, C1981-019, MT7 RECLAMATION COST ESTIMATE <br />DATE: JUNE 6, 2016 <br />CC: <br />ATTACHMENTS: RECLAMATION COST ESTIMATE, SPREADSHEET-PERMITTING ACTIONS SINCE RN6, <br />TASK ASSUMPTIONS AND RENUMBERING <br />I have updated the Reclamation Cost Estimate (RCE) for the Colowyo Mine for Midterm Review <br />No. 7. <br />The last compete RCE was conducted March 18, 2013 during the Division’s review of Permit <br />Renewal No. 6 (RN6). Since RN6 there has been one permit revision, PR3, three bond releases, SL6, <br />SL7 and SL8, three technical revisions, TR99, TR101, TR104, and seven minor revisions approved, <br />MR127, MR141, MR142, MR143, MR149, MR150, and MR151, approved that have revised the <br />reclamation liability value. Attached to this memo is a spreadsheet summarizing the revisions and <br />bond releases that have been approved since RN6. <br />Another spreadsheet illustrates task renumbering. Tasks added during revisions or adjusted during <br />bond releases since RN6 have been incorporated into the MT7 reclamation cost estimate. <br />The total reclamation liability for the Colowyo permit is $291,151,290. Colowyo Coal Company has <br />requested incremental bonding. Incremental bonding allows for permitting of a future mining <br />district, known as the Collom mine area, but not bonding the future mining area until the operator <br />plans to conduct on the ground activities. Colowyo Coal Company has not initiated construction of <br />the Collom Mining District. Colowyo Coal Company has initiated construction of the approved <br />Collom haul road. <br />Reclamation costs associated with the on the ground disturbances and approved mine plan on the <br />existing Colowyo Mining district, and costs associated with reclamation of the Collom haul road total <br />$70,724,252. This value represents the minimum bond that the Division must hold for the Colowyo <br />Mine. <br />Colowyo Coal Company currently has a self-bond in the amount of $80,517,829 in place with the <br />Division. This value is adequate to cover the reclamation cost estimate for Midterm No. 7. <br />Attached to this memo is the Reclamation Cost Estimate for the Colowyo Mine for Midterm No. 7.