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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 />March 6, 2017 <br />To: Brock Bowles <br />From: Jason Musick <br />RE: New Horizon Mine, C-1981-008 <br />SL -15 RCE Memo <br />Per your request, attached is the reclamation cost estimate for the 2016 New Horizon Mine Bond Release <br />Application No. 15 (SL15). 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 />$4,637,363.14. This estimate includes reclamation tasks identified in the permit and includes costs for <br />Technical Revisions 70 and 74, Bond Release No. 17 (SL17), and Bond Release 18(SL18, which reflect the <br />only revisions that included an increase in liability since the estimate was last updated with the 2016 <br />Bond Release No. 16 (SI -16). SL16 updated the costs for the entire site. <br />When determining the amount of liability that can be released based on the SL -15 application, the <br />Division updated the cost estimate for the entire mine site based on costs updated with the 2016 SU6 <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 -15 <br />application. <br />Task 041 - The approval of SL15 will remove the topsoil replacement costs associated with dryland <br />pasture in the area of the SU 5 request. Task 041 will be removed from the RCE. <br />Task 046 - The approval of SL15 will remove all topsoil replacement tasks in the area of E Sec 31. <br />Although 18.65 acres is associated with E Sec 31 for SL15, the RCE identifies 22.7 of which 4.05 acres are <br />associated with a now permanent road. Task 046 will be removed from the RCE. <br />Task 049 - The approval of SL15 will remove all topsoil replacement tasks in the area of NW Sec 6. <br />Although 10.19 acres is associated with NW Sec 6 for SL15, the RCE identifies 10.36. Task 046 will be <br />removed from the RCE. <br />Task 030D - The approval of SL15 will remove 64.3 topsoil replacement acres in the area of Zone 5 <br />identified as the Lloyd/Benson property. Task 030D will remain in the permit as portions of Zone 5 <br />remain to be Phase II released. <br />Due to the substaintal number of bond releases and the change in costs and acres, the Division will utilize <br />the method of identifing tasks associated with the 111.4 acres as the applicable bond amount for this SL - <br />15 bond release. Based on an estimate by the Division, the total applicable bond associated with the <br />111.4 acres subject to the SL -15 bond release is $542,692.57. As such, the Division can only release <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 * r 1876 4iF <br />