2021-06-02_REVISION - C1980007 (15)

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Total 1 121.44 1 $1,125,369.22 1 67.60 1 $196,037.00 1 61.55 1 $135,048.00 Prior to the SL-12 application the total disturbed acreage(TDA) at the West Elk Mine was 562.23 acres, and the required surety(RS)was$12,276,561. Rule 3.03.1(2) allows for the release of up to 60% of the applicable bond at Phase I,25% at Phase H and the remaining 15% at Phase III,the calculation below shows the maximum dollar amount eligible for release with the approval of SL-12 (X): SL12 acres X TDA x RS x 0.6 22.58 X = x $12,276,561 x 0.6 562.23 X = $295,827.06 Table 3 Maximum Bond Eligible For Release per Rule 3.03.1(2) Prior to SL-12 Prior to SL-12 SL-12 Eligible for release (Acres) (Required Surety) (Acres) with SL-12 Phase I-600o $7,365,936.60 22.58 $295,827.06 Phase 11-25% $3,069,140.25 0.00 $0.00 Phase III- 15% $1,841,484.15 0.00 $0.00 Total 562.23 $12,276,561.00 $295,827.06 In the site-wide reclamation cost estimate(RCE)recently completed with the approval of Permit Renewal 07 (RN-07)the reclamation of sites included in the SL-12 application is accounted for in tasks 419a, 419b,439a,439b,440a,440b, and 441a(which also includes sites that are not addressed with SL- 12);these tasks will need to be reconciled when the next site-wide RCE is calculated. The total of the estimated direct costs associated with these tasks (Y)is$319,085, as shown in table 4. Table 4 RN7 Cost Estimate Task Task Description Task Direct Number Cost 419a 35 MVBs/Exp in SL-121: plug and seal $122,037 419b 35 MVBs/Exp in SL-12: regrade $114,092 439a 5 Exploration holes, MR423: plug and seal $30,011 439b 5 Exploration holes, MR423: regrade $7,141 440a 3 Exploration holes, MR424: plug and seal $18,004 440b 3 Exploration holes, MR424: regrade $5,878 441a 33 Monitoring wells: plug and seal $80,380 Task 441a pro-rated for 9 holes $21,922 Total applicable to SL-12 $319,085 C-1980-007 Page 9 of 10