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February 1998 Haydrn Gulch Mine 'Phase 2 & 3 Bond Relea\e Application ~ PaRe S <br />1.3 REQUIREMENTS OF PHASE II BOND RELEASE <br />• The following information is submitted to meet the requirements for Phase II bond release on <br />the former mine site area and the azea previously utilized for mine site support facilities <br />including the shop/wazehouse area, explosive storage area, landfill area, the road corridor <br />between the landfill and explosive storage areas, and topsoil stock piles "A" "B" and "C". The <br />location of the reclaimed disturbance areas aze shown on Map. 1, Phase II/Phase III Bond <br />Release Map. ,The mine site area was reclaimed between 1979 and 1986. The facilities area was <br />generally reclaimed dwing 1987, however, former sedimentation ponds 001 and 002 were <br />reclaimed during October 1996. A total of approximately 364.1 acres were disturbed as a result <br />of the Hayden Gulch Mine. <br />Four parcels within the permit dismrbance boundary, totaling approximately 6.8 acres, have <br />been excluded from this Bond Release Application as shown on Map 1. These parcels have an <br />additional period of liability and HGCC anticipates submitting a Phase II/Phase III bond <br />release application for these parcels in 2002. <br />In all, HGCC is requesting Phase II/Phase III bond release on 357.3 acres of the previously <br />disturbed azea. <br />As discussed in Section 1.1, Introduction, DMG presently holds a corporate surety bond of <br />$2,300,000. The outstanding bond liability for the Hayden Gulch Mine is $551, 280. HGCC is <br />requesting a Phase II bond release of $196,271. Included in the liability reduction request are <br />direct reclamation costs, i.e., the cost of reclaiming Ponds 001 and 002 and redistributing <br />• stockpiles A, B, D and E and indirect reclamation casts, i.e., contractor's overhead and profit. <br />The Phase II bond liability release amount was calculated usrng the same unto costs developed <br />by DMG in a Reclamation Cost Summary for the Hayden Gulch Mine dated April 18, 1996. <br />The Reclamation Cost Summary and bond reduction calculations aze included in Exhibit 3, <br />Hayden Gulch Mine Phase II/Phase III Bond Liability Reduction Calculations. <br />Following is specific information required for the Phase II bond release as outlined in the Bond <br />Release Guideline: <br />I) MaD Showing Revegetated Areas And Reference Areas: <br />Map 2, Revegetation Map, shows the revegetaced areas and the vegetation <br />reference azeas. <br />2) Summary O{The Reclamation Arzd Management History For The Bond Release Parcels: <br />Map 1, Phase II/Phase III Bond Release Map, presents the reclamation history <br />at the Hayden Gulch Mine, showing the years in which various parcels of the <br />mine site were reclaimed. Table 1, Reclamation Management at the Hayden <br />Gulch Mine, summarizes acreage reclaimed by year, indicates the seeding <br />mixture rued, any woody species plantings, and other management practices <br />performed. <br />• <br />Montgomery Watson Americas (dba TerraMatrixf ' P.O. Box 774018 <br />Steamboat Springs, Colorado 80477 • (970f 879~6I60 <br />W 1nl~jYu„ 1 G J l6NMdm Aglruu\Tm\M~ 1 G l bd Rd~Ary(ruu <br />]/]lillA <br />