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COLORADO <br /> October 14,2016 <br /> � Division of Reclamation, <br /> Mining and Safety <br /> Ken Skoglund Department of Natural Resources <br /> Boyce Land&Cattle Co.,LLC <br /> P.O.Box 209 1313 Sherman Street, Room 215 <br /> Moffat,CO 81143 Denver,Co 80203 <br /> RE. Cotton Creek Pit,Permit No.M-2013-054,Explanation of Surety Increase(SI-1) <br /> Dear Mr.Skoglund: <br /> This reclamation cost update was based on conditions observed on the October 4,2016 site <br /> inspection.No Surety increases have occurred since the permit issuance in 2014.Since the permit <br /> issuance mining as progressed and is at or near the maximum 5 acres disturbance as per the <br /> approved permit. <br /> Typically the Division updates the reclamation cost estimate following a permit revision or a field <br /> inspection,both of which have recently happened.It is Division policy to periodically update its <br /> costs to ensure that the Financial Warranty adequately,reflects the actual current cost of fulfilling <br /> the requirements of the approved reclamation plan. <br /> Below is a table summarizing input values that have been updated in Surety Increase(SI-1).This <br /> table does not account for price changes resulting from inflation or other RS Means cost changes. <br /> Bond calculations are based on a combination of field observations and worst case scenario based <br /> on the approved reclamation permit. <br /> Task Form Used Change Justification <br /> 01a Demo - Remove line item to create excavated pit since one now exits <br /> + Add job hours <br /> Material has been removed update volumes 15 cy-> 10 cy <br /> 03a Dozer + Adjusted topsoil volumes,assumed 1 ac @ 8".881cy->1076 cy <br /> 05a Loader + Adjusted topsoil volumes,assume 4 ac @ 8". 1076cy->4302 cy <br /> 06a Dozer + Adjusted topsoil volumes,assume half of transported volume <br /> needs spread. 1076cy->2151 cy <br /> 07a Reveg - Switch when weed application is employed.Tilling->mulching. <br /> Line items have different costs,post seeding is more practical <br /> of coo <br /> 1313 Sherman Street, Room 215, Denver,CO 80203 P 303.866.3567 F 303.832.8106 http://mtmng.state.co.us I �i fir''`' to <br /> John W. Hickenlooper, Governor I Robert W. Randall, Executive Director I Virginia Brannon, Director <br />