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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 />Memorandum <br />Date: October 20, 2016 <br />To: Tabetha Lynch, DRMS <br />From: Jared Ebert, DRMS <br />RE: Trapper Mine, C-1981-010; SL -17; Liability Reduction Amount Revised <br />As you have requested, I have revised the liability reduction calculation for the SL 17 bond release <br />application for the Trapper Mine. Based on your observations during the bond release inspection, <br />a 1.8 acre parcel (A -C -04B) has been removed from the SL17 bond release request area. Given <br />this, the remaining liability associated with this parcel will remain in place. Also, since I <br />conducted the liability reduction calculation previously the required liability at the site has <br />changed given the approval of TRI 15. See the table below for details. <br />The following text can be included in your Findings Document regarding the proposed liability <br />reduction amount: <br />The Division currently holds a performance bond of $23,400,000.00. For the Trapper Mine the current <br />required surety amount for the site is $23,396,030.36. Based on the observations above, the Division <br />proposes to release $659,843.13. The remaining $22,736,187.22 required surety is sufficient to assure <br />completion of the remaining reclamation work at the site if the work had to be performed by the Division, <br />including the cost of reestablishing vegetation on any revegetated areas, should those areas fail. The bond <br />liability reduction calculation is shown on the table below: <br />Pre-SL17 Liability <br />Acres <br />Cost/Acr <br />e <br />% <br />PR07 + TR 115 Worst Case Bond Estimate Total <br />$20,820,474.05 <br />2122.3 <br />$9,810.34 <br />100.00 <br />% <br />Phase I Bond Release <br />$1,460,562.68 <br />372.2 <br />$3,924.13 <br />40.00% <br />Phase Il Bond Release <br />$1,114,993.63 <br />757.7 <br />1 $1,471.55 <br />1 15.00% <br />Pre-SL17 Required Surety <br />$23,396,030.36 <br />Pre SL- <br />Phase Bond Release 17Acrea a <br />Post SL - <br />17 Acres <br />Phase 1 4372.3 <br />4372.3 <br />Phase 2 4000.1 <br />4000.1 <br />oe_c <br />Fes/ W� X90 <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 1876,+i <br />