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This mining operation is phased as described in Exhibit D. The maximum disturbance at any time is limited to 45 <br />acres. Therefore, the operator's exposure to reclamation costs is not the total of all 6 mining areas but a portion of <br />any three mining areas. Keeping in mind that the mining areas are in various stages of mining and/or reclamation, <br />the scenario presented below represents the most exposure for reclamation costs: <br />• Extraction Area "A" has been mined and backfilled with 93,350 cubic yards of stockpiled material from Area <br />"A". A total of 356,509 cubic yards of material, along with 11,132 cubic yards of topsoil, is required to reclaim <br />Area "A". Staging is setup on the northern half of Area "A". <br />• Overburden and topsoil is stripped from Area "B" and stockpiled in the southwestern portion of Area "C". <br />There is a surplus of 157,920 cubic yards of overburden from Area "B" that will be hauled and placed in <br />Extraction Area "A". Mining operations will not commence in Area "B" until mining is complete in Area "A". As <br />mining continues through Area "B", the reclamation process will commence (within Area "B") and will be <br />conducted simultaneously with the mining. Once Area "B" is completely mined out, it is expected that 50 <br />percent of the reclamation will be completed. At this point, the remainder of Area "B" will be reclaimed. <br />• Mining operations will not commence in Area "C" until 50 percent of the grading, topsoil and seeding in Area <br />"B" is complete. Topsoil will be stripped and stockpiled in a berm located along the west boundary of the <br />mining area. Overburden and additional topsoil required for reclamation of Area "C" will be stockpiled in the <br />southwest corner of Area D. Surplus of overburden material excavated from Area "C" (93,400 cubic yards) will <br />be hauled and placed in Area "A" to complete the backfilling and grading process of Extraction Area "A". <br />• Once Area "A" has been backfilled and graded to a uniform elevation, the entire area will be used as a staging <br />area throughout the life of the pit and will not have topsoil and seeding completed until such time that the <br />extraction areas are mined out and material stockpiles have been removed from the site. <br />Following is a summary of remaining reclamation costs associated with the above scenario: <br /> UNIT TOTAL <br />ITEM DESCRIPTION UNIT QUANTITY PRICE PRICE <br /> Extraction Area A <br />1 Mobilization LS 1 500.00 $500.00 <br />2 Grading and Sloping CY 100,098 0.47 $47,046.06 <br />3 Replace Topsoil CY 11,132 0.65 $7,235.80 <br />4 Seed, Mulch, Tack & fertilize AC 13.8 350.00 $4,830.00 <br />5 Misc. Admin. Costs (21%) LS 1.0 12,518.49 $12,518.49 <br /> Subtotal $72,130.35 <br /> Extraction Area B <br />1 Mobilization LS 1 500.00 $500.00 <br />2 Grading and Sloping CY 10,555 0.47 $4,960.85 <br />3 Replace Topsoil CY 1,280 0.65 $832.00 <br />4 Seed, Mulch, Tack & fertilize AC 1.6 350.00 $560.00 <br />5 Misc. Admin. Costs (21%) LS 1.0 1,439.10 $1,439.10 <br /> Subtotal $6,852.85 <br /> Extraction Area C <br />1 Mobilization LS 1 500.00 $500.00 <br />2 Grading and Sloping CY 29,400 0.47 $13,818.00 <br />3 Replace Topsoil CY 2,656 0.65 $1,726.40 <br />4 Seed, Mulch, Tack & fertilize AC 3.8 350.00 $1,323.00 <br />5 Misc. Admin. Costs (21%) LS 1.0 3,647.15 $3,647.15 <br /> Subtotal $17,367.40 <br /> Reclamation Costs $96,350.60 <br />Revised January, 2003 <br />