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REQUEST FOR A TECHNICAL REVISION FOR A MODIFICATION TO THE BOND BOUNDARY PERMIT C-81-019 COLOWYO COAL COMPANY We have on several occasions discussed with the Division the changes we are making to our permit to incorporate the mining of additional coal leases to the south of the present permit boundary. We are nearly finished with a permit renewal/revision to be submitted to the Division in the near future. The revised permit will contain significant changes to the permit to advance mining operations into Section 16, Township 3 North, Range 93 West. Access to Section 16 will be facilitated by a haul road constructed through the upper reaches of the Streeter drainage in 1992. The purpose of this Technical Revision is to change the bond boundary in the vicinity of the Streeter drainage and the south lease boundary. Refer to Map 34 Bond Calculation Map, Central for details of this change. This change will allow for stripping of additional topsoil this year up the Streeter drainage to the permit boundary in anticipation of future haul road construction. The additional bonded area is approximately 75 acres. A Bond calculation estimate is also submitted which assumes the need for the replacement of 18" of topsoil on the entire 75 acres under the bonding scenario. This is a worst case scenario as it is very unlikely we will disturb the entire 75 acres, rather it is likely that topsoil will be stripped only for the haul road corridor. To expedite approval of this revision we assumed this worst case scenario. Note also that the bond calculation utilizes the Division's factors and assumptions developed for the bond revision for Section 11 dated January 23, 1989. This provided a simplified calculation for the additional bond liability increment. The calculation of the additional bond liability for this bond area modification is estimated at $199,645. The addition of this amount to the current bond liability of $8,128,579 will increase Colowyo's total bond liability to $8,328,224 leaving a remaining contingency of $419,181 to the $8,747,405 Colowyo Bond. Finally, as we have discussed previously, our permit revision/permit renewal application to be submitted in the near future will involve a significant increase in the Colo~ayo bond amount. To further discuss bond issues regarding the current 5- year permit term will be mute. We believe the remaining contingency of $419,181 provides the flexibility and assurance that Colowyo is adequately bonded.