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Exhibit Page 39 <br />NOTES AND ASSUMPTIONS: <br />1. Backfilling will be required only on not more than 20% of total affected area (based <br />on average width of 1000 feet and maximum headwall of 40 feet at 1 V:3H slope, <br />requiring 120 feet (12%), and rounded up to 20%. <br />2. Berms on downhill side will be constructed as part of initial stripping. Shaping (final <br />contouring) and placement of topsoil will be done at that time and are therefore not <br />part of the cost of reclamation. Berms will be revegetated at time of construction, <br />but for conservative bonding, revegetation of these areas is included in the estimate. <br />Berms will not exceed five (5%) of total affected area. <br />3. The portion of the backfilling associated with stripping has not been included, as the <br />cost would not be incurred if the stripping was not done. <br />4. Revegetation is based on using existing soil types for the entire site (other than <br />roads), and vegetating appropriately. Revegetation includes costs of soil <br />amendment and fertilization (if used). <br />5. If there is a surplus of soil, backfilling will be accomplished using the nearest source <br />of available material, or soil thickness will be increased accordingly. In particular, <br />berms at lower end may be constructed entirely of stripped soil. <br />6. Grading and contouring includes work to shape basins for water to infiltrate and <br />subirrigate surrounding areas. Basins will not require topsoil placement or <br />vegetation, and will not exceed 5% of total affected area. <br />7. Roadways (30 ft wide with shoulders) will not require scarification, final contouring, <br />or topsoil placement, and will be constructed to county standards as mining <br />progresses. Roadways will require approximately 8% of total area. <br />8. All acreages are estimates. <br />9. These figures represent present (2002) costs using contracted equipment and <br />personnel. <br />10. Montezuma County has several large areas ready to release but waiting for <br />reasonable moisture to improve growth of grass before applying for release, totaling <br />at least 35 acres. <br />