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Tabetha Lynch <br />Page 6 <br />July 11, 2016 <br />reduction in the amount of the bond. However, the amount of liability that could be reduced <br />with this approval was calculated. TMI historically and currently utilizes the "Rolling Bond" <br />concept and the reclamation cost estimate is calculated according to the worst-case condition <br />during the permit term. The last time this cost was estimated was during the review of Permit <br />Revision No. 7. See section 1.4 and Appendix A of TMI's permit for details. The theory is that <br />as TMI conducts their mining and reclamation operation at any point during the five year permit <br />term the Division would have enough money to reclaim the site. TMI and the Division calculate <br />what the direct and indirect cost would be for the Division to reclaim the site at the point of the <br />worst-case disturbance. This total is utilized to determine the approximate cost per acre to <br />reclaim the worst case disturbance. For bond release parcels that have been reclaimed and <br />approved for bond release the remaining liability associated with these sites is calculated based <br />on the Phase I, II and III bond release schedule discussed in Rule 3.03.1(2) . For example for <br />areas that have obtained Phase II bond release, the remaining liability for these acres is <br />calculated by multiplying the acres that have been Phase II bond release by 15% of the cost per <br />acre to reclaim the worst case disturbance. <br />"Baring the Division withholding approval of any areas, here is the bond release calculation: <br />Phase Bond Release Area Cost Accounting <br />Acres <br />Cost/Acre <br />% <br />PR07 Worst Case Bond Estimate Total <br />$20,307,837.15 <br />1968.3 <br />$10,317.45 <br />100.00% <br />Phase I Bond Release <br />$1,536,061.98 <br />372.2 <br />$4,126.98 <br />40.00% <br />Phase II Bond Release <br />$1,172,629.80 <br />757.7 <br />$1,547.62 <br />15.00% <br />Grand Total PR07 Bond Estimate <br />$23,016,528.92 <br />Phase Bond Release <br />Pre <br />SL -17 Acreage <br />Post <br />SL -17 <br />Acrea e <br />Phase 1 <br />4372.3 <br />4372.3 <br />Phase 2 <br />4000.1 <br />4000.1 <br />Phase 3 <br />3242.4 <br />3692.6 <br />Phase Bond Release Area Cost Accounting Post SL -17 <br />Acres <br />Cost/Acre <br />% <br />PR07 Worst Case Bond Estimate Total <br />$20,307,837.15 <br />1968.3 <br />$10,317.45 <br />100.00% <br />Phase I Bond Release <br />$1,536,061.98 <br />372.2 <br />$4,126.98 <br />40.00% <br />Phase II Bond Release <br />$475,892.39 <br />307.5 <br />$1,547.62 <br />15.00% <br />Post SL -17 Total Liability <br />$22,319,791.52 <br />