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V. 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 />July 2, 2018 <br />Internal Memo <br />To: Clayton Wein, DRMS <br />From: Tabetha Lynch, DRMS <br />Re: McClane Canyon Mine, LLC (Permit No. C-1980-004) <br />Permit Renewal No. 8 (RN -8) <br />Reclamation Cost Estimate <br />As requested I have reviewed and updated the cost estimate for McClane Canyon Mine. The cost estimate <br />enclosed is based on the Divisions best match to the tasks available in CIRCES, and utilizes Unit Costs last <br />updated by the Division in June of 2017. <br />The cost estimate was last updated with Midterm No. 7 (MT7), approved 12/31/2013. One permitting action has <br />resulted in a change in liability since the last update, Minor Revision 58 (MR58). MR 58 was approved <br />1/2/2018 and trasfered responsibility of a reclaimed emergency drill pad and associated light use road from the <br />McClane Canyon permit to the Munger Canyon Permit (C1981-020). This reduced the liability associated with <br />the McClane permit by $7,290.90. This road and drill pad were orginally added to the permit with Minor <br />Revision No. 37 (MR37). The removal of the associated reclamation tasks (MT7 RCE tasks: 004, 024, part of <br />027, and 034) was a part of this update. <br />The current required surety for the McClane Canyon Mine is set at $445,618.31. Enclosed is the CIRCES cost <br />estimate for RN8. Based on this estimate the liability will need to increase by $4,035.65 for a total liability of <br />$449,653.96. The current bond held for the site is $452,909.21. <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 <br />