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PARCEL, MAURO, HULTIN & SPAANSTRA, P.G. Ms. Susan McCannon February 20, 1991 Page 2 Agreement § V. To date, Rockcastle has completed the following reclamation at the Grassy Gap site and, therefore, is entitled to release of the following respective bond amounts: Reclamation Amount of Activity (CMLRD Bond Release (CMLRD Agreement Section) Agreement Section) Backfilling, grading and retopsoiling $47,842 (§ V.2) the Pit 4 area (§ II.1, II.2) Reseed Pit 4 area (§ II.3) $18,906 (§ V.3.a) Remove shop building and recontour, N/A retopsoil and reseed this area (§ II.4) Completion of Engineering studies and $15,000 (§ V.3.b)' road buttressing activities (§ IV. 2) CMLRD's assertion (in the December 19, 1990 adequacy letter) that Rockcastle's bond request is a final bond release is premature. Section IV of the CMLRD Agreement allows CMLRD to condition final bond release if reclamation activities at Pits 5 and 6 remain uncompleted at that time. Section V.5 states that final bond release will occur upon completion of "...the reclamation activities set forth in §§ II, III & IV of [the CMLRD] Agreement:' Here, despite completion of the vast majority of reclamation work at the site, several reclamation activities are outstanding in addition to completion of sediment control features at Pits 5 and 6. These activities include, but are not limited to, reclamation of sediment ponds and installation of minor toe buttresses adjacent to the Pit 4 haul road. Moreover, this is not the final bond release request contemplated in §§ IV.1 or V of the CMLRD Agreement. Please do not hesitate to contact me or Jerry Nettleton (ACZ) if you have any questions regarding the requested release of bond monies pursuant to the CMLRD ' Rockcastle acknowledges that minor toe buttresses were approved by CMLRD and must still be installed in areas adjacent to the Pit 4 haul road. Rockcastle estimates that these activities will cost approximately $ 2,250. Thus, Rockcastle hereby reduces its requested bond release to $ 12,750 for these activities.