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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 />December 28, 2016 <br />To: Brock Bowles <br />From: Jason Musick <br />RE: New Horizon Mine, C-1981-008 <br />SL -18 RCE Memo <br />Per your request, attached is the reclamation cost estimate for the 2016 New Horizon Mine Bond Release <br />Application No. 18 (SL18). The Division updated the reclamation cost estimate with costs updated in the <br />Spring of 2016 to reflect 2016 CRG, Means and CDOT rates. This updated estimate total was <br />$4,667,989.83. This estimate includes reclamation tasks identified in the permit and includes costs for <br />Technical Revisions 70 and 74 and Bond Release No. 17 (SL17), which reflect the only revisions that <br />included an increase in liability since the estimate was last updated with the 2016 Bond Release No. 16 <br />(SL16). SU6 updated the costs for the entire site. <br />When determining the amount of liability that can be released based on the SL -17 application, the <br />Division updated the cost estimate for the entire mine site based on costs updated with the 2016 SL16 <br />decision as noted above, and the tasks that could be removed based on work acomplished and requested <br />to be released. Below are a list of tasks that have been revised or removed based on the SL -18 <br />application. <br />Task 056 - The approval of SU8 will remove all regrading tasks associated with the BB detour road. Task <br />056 will be removed from the RCE. The task to regrade Pond 014 is included, as the BB detour road <br />omitted Pond 014. <br />Task 081 - The approval of SL18 will remove all ripping tasks associated with the BB detour road. Task <br />081 will be removed from the RCE. <br />Task 082 - The approval of SL18 will remove all material haulage tasks associated with the BB detour <br />road. Task 082 will be removed from the RCE. <br />Task 083 - The approval of SU 8 will remove all material haulage tasks associated with the BB detour <br />road. Task 083 will be removed from the RCE. <br />Task 084 - The approval of SL18 will remove all ripping tasks associated with the BB detour road. Task <br />084 will be removed from the RCE. <br />Task 085 - The approval of SU8 will remove all regrading tasks associated with the BB detour road. Task <br />085 will be removed from the RCE. <br />Task 096 - The approval of SL18 will remove all regrading tasks associated with the BB detour road. Task <br />096 will be removed from the RCE. <br />OF COLO <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http://mining.state.co.us I <br />John W. Hickenlooper, Governor I Robert W. Randall, Executive Director I Virginia Brannon, Director * x 1876 4* <br />