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<br />FINANCIAL WARRANTY REQUII2EMENT RE-EVALUATION <br />SAN LUIS PROJECT M-88-112 <br />February 24, 2000 <br />TASKS AND COST ESTIMATES FOR REMAINING RECLAMATION OBLIGATIONS: <br />WEST PIT WATER MANAGEMENT PROGRAM <br />ASSUMPTIONS <br />In order to clean up the Wes[ pit backf711, the operator needs to withdraw, and pro;,ess, 4.91 pore <br />volumes of water from the lower pit area and 5.24 pore volumes of water from the pink gneiss <br />area. <br />1 pore volume equals 106,831,591 gallons in [he lower pit and 1 1,408,470 gallons in the pink <br />gneiss. <br />4.91 pore volumes in the lower pit equal 524,543,1 -2 gallons. 5.24 pore volumes in the pink <br />gneiss equal 59,780,383 gallons. Total for both areas is 584,323,495 gallons. <br />2 processes and l alternative have been evaluated since they are the only approved operations. <br />A) Nano-filtration process -Cost equals $6.90/1000 gallons treated. 12 month operation. <br />B) Evaporation system - $10,810.00/month (backup system). <br />The West pit water level will be pumped down to a msl of 8580 feet (for the lower pit. The pink <br />gneiss water level should equalize at approximately 8604 feet msl) at 400 - 700 gpm. Thereafter, <br />the aquifer will be pumped at the steady state rate which is estimated at l 10 gpm I>lus 70 gpm <br />which BMRI anticipates pumping from the alluvial aquifer and re-injecting into [lie lower pi[ <br />area. So, the total pump rate from the West pit is anticipated to be 180 gpm. <br />It will take approximately 7.0 years to pump and treat the above noted pore volumes of water. <br />WATER MANAGEMENT TREATMENT AND ESTIMATED COSTS <br />584,323,495 gallons x $6.90/1000 gallons = $4,031,832 <br />Monitor 8 wells at 1 sample/month at $100.00/sample = $9,600/year <br />$9,600/year times 7.0 years = $67,200 <br />CDPS discharge monitoring - 12 months times 4 samples/month times $200.00/sample = <br />$9,600/yeaz <br />$9,600/year times 7.0 yeazs = $67,200 <br />Yearly water loss from the West pit ponds and sludge production is approximatel}' 6 acre -feet. <br />