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The Division currently holds a performance bond of$4,500,000 for the Elk Creek Mine. The most <br /> recent update of reclamation liability for the site prior to SL-1 was $4,323,977.80. This will be the <br /> figure used to calculate the maximum dollar amount eligible for release based on the conditions of Rule <br /> 3.03.1(2),which states that up to 60% of the bond can be released at Phase I,up to 25%can be released <br /> at Phase II and the remaining 15%can be released at Phase III. Table 2 shows the bond release history <br /> at the Elk Creek Mine,with the acres that have achieved each phase of bond release. Table 3 shows the <br /> maximum amount of bond eligible for release based on the acreages in Table 2. <br /> Table 2 <br /> Elk Creek Mine C-1981-022 Bond Release History <br /> Bond Release Acreage <br /> Total Phase I Phase I Phase II Phase II Phase III Phase III <br /> Disturbed Released Remaining Released Remaining Released Remaining <br /> SL-1 239.2 19.4 219.8 0 239.2 0 239.2 <br /> SL-2 1 239.2 1 138.74 1 81.06 1 72.69 1 166.51 1 2.33 1 236.87 <br /> SL-4 239.2 5.7 75.36 5.7 160.81 16.4 220.47 <br /> SL-3 239.2 0 75.36 50.44 110.37 0 220.47 <br /> Table 3 <br /> Maximum Bond Eligible For Release per Rule 3.03.1(2) <br /> SL-3 Acres SL-3 Total (239.2 acres) <br /> Phase 1-60% 0.00 $0.00 $2,594,386.68 <br /> Phase 11-25% 50.44 $227,948.83 $1,080,994.45 <br /> Phase III- 15% 0.00 $0.00 $648,596.67 <br /> Total $227,948.83 $4,323,977.80 <br /> The reclamation liability prior to SL-3 was $2,141,915.08. Based on the maximum bond eligible for <br /> release amount from Table 3,the minimum new reclamation liability is$1,913,966.25 (that is, <br /> $2,141,915.08- $227,948.83). <br /> The Division estimates the cost to complete the reclamation tasks remaining at the Elk Creek Mine to be <br /> $2,039,068.06,based on subtracting the cost of the tasks associated with SL-2, SL-4 and SL-3 from the <br /> most recent site-wide Reclamation Cost Estimate(SL-1/RN-7). <br /> Since the estimated cost of remaining reclamation($2,039,068.06) exceeds the minimum new <br /> reclamation liability ($1,913,966.25)less than the maximum eligible amount($227,948.83)will be <br /> released with SL-4. The amount to be released will be the difference between the reclamation liability <br /> prior to SL-3 and the estimated cost of remaining reclamation(that is $2,141,915.08- $2,039,068.06= <br /> $102,847.02). The amount of bond to be released is summarized in Table 4. <br /> C-1981-022,SL-3 Page 9 of 10 <br />