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~ ~ II ~ I~~I ~~I ~~~~ ~ ~~ ~ <br /> <br />~. <br /> <br />STATE OF COLORADO <br />~RQIYI DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1 313 Sherman SL, Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) A65-3567 ~a,L _, N~~e ~ ~Q~ C (` ~. <br />FTX: (303) 832-8106 1 n, ~1 ylG~ <br />`~ ENT VIA <br />DATE: November 23, 1999 `~ <br />~~ <br />TO: Hal Copeland, teigers Corp.. <br />FROM: Allen Sorenson ~~ <br />D-n U , a-,~t~ ~ ~ <br />'eq v I rc% i•K Pvc ~"~ <br />RE: Reclamation Bond, American Soda, Yankee Gulch, Permit M-99-OOti <br />DIVISION OF <br />MINERALS <br />GEOLOGY <br />RECLAMATION <br />MINING•SAFETY <br />gill Owens <br />Governor <br />GreRE Watcher <br />Executive Dveclor <br />Michael B. Long <br />Division Director <br />In an effort to better reconcile the bond required by the State of Colorado and the BLM, the following <br />analysis is provided. <br />In a letter dated 11/22/99, DMG stated that a $2,603,000.00 bond was acceptable if posted in ndditiort <br />to the $26,000.00 held by the State and the test mine bond held by the. BLM. In order to release the test <br />mine bond currently held and terminate the test mine notices with the State, additional bond in the <br />amount of $400,445 must be posted. The derivation of the test mine bond amount is tabulated m [he <br />attached spreadsheet. All line items in the spreadsheet are self-explanatory except the seeding cost and <br />the demolition cost which are derived below. <br />Demolition Cost for Test Mine Facilities <br />Demo test mine process building -superstructure $16,628 <br />Demo test mine process building -slab w/ rods $13,048 <br />Demo test mine boiler pad $2,605 <br />Demo test mine cooling pond pump block $ l04 <br />Test mine pond liner-cut and fold in $9,862 <br />Concrete disposal $3,900 <br />TOTAL $46,147 <br />ReveEetation of Test Mine Facility <br />13-acre total disturbed area. 80 percent to be seeded @ $1419/acre or $14,757.60. 20 percent to be <br />planted to shrubs C~ 6396.07/acre or $16,629.78. Total for 13 acres is $31,387.38. <br />SUMMARY <br />The total bond to be posted to allow surface development up to the point of drilling additional solution <br />mining wells and release of test mine notices is $2,603,000.00 + $26,000.00 + $400,445 + amount of <br />BLM lease bond = $3,029,445. Since the State already holds the $26,000, the total amount to be posted <br />with BLM to allow termination of the test mine notices is $3,003,445 + amount of BLM lease bond. <br />