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NOI~-16-1999 1317 FRtJM STEIGERS CORPORRTION TO ~ 3038328106 P.01i03 <br />999 F [20Yrj STEIGERS CORPORATION <br />6551 $OITII'1 REVERE PARKWAY, SUITE 250, ENCLEWOOD, COLORADO 80111-6411 <br />FACSIMILFJTELECOPY TRANSMITTAL FO/R,,'M,~ <br />TELEPHONE N0.303-799-3633 ~OG , ~~~"tQ - r r1~ C ~ ~ `~ ~ ~'~ ~ ~~~~FAX/TELECOPY NO.303-799-6015 <br />Notice: This facsimile contains confidential information that is being transmitted to and is infettded only for the use of the <br />recipient(s) tutmed beloru. 2eadi»g, disclosure, discussion, dissentirmtiot:, disfribution, or copyirtg of this information by anyone other <br />than the named recipient or his or her employees or agents is strictly prohibited. If you have received this facsi>nile in error, please <br />irnmediately destroy it and notify us by telephone at (3031 799-3633. <br />To: Paul Daggett LOCATION: Meeker, CO TELEPHONE NO.: 970-578-3f~ S yl ~ <br />Allan Sorenson Denver, CO 303-86fr-9567 ~'tu~ ef'/0 Co <br />Cc: Ed Cooley Parachute,CO 970-285-0407 <br />FROM: Hal Copeland LocATION: Englewood, CO TELEPHONe No.: 303-799-3633 <br />covER `/ <br />SHEEP PLUS 2 PAGPS DATE: NOVembei 16, 1999 FAX/TELECOPIER NO.: 970-87$-5717 <br />ORIGINAL TO BE MAILED BY: -Regular Mail -Courier ~LNone <br />CONFIRMATION NEEDED: -Yes ~c_No <br />REQUES'T'ED ACT{ON: _PerYour Request _x_For Your Info and File -Please Review and Call Me <br />_~lease Review and Answer in W riling -Please Answer by Fax <br />MESSAGE: Paul and Allan: <br />Attached is the breakdown of the bond estimate for the initial construction activities. American Soda <br />will proceed with filing this bond (with BLM) if both CDMG and BLM are satisfied with the amount. <br />This estimate is based on CDMG's detailed bonding estimate. The second page (demolition) is just a <br />breakdown of the demolition line item on the first page. This estimate includes all ground <br />disturbance for the Piceance Site processing facilities, 0-5 year mine panel (a1175 wells), and access <br />roads. It does not include any casts for downhole P&A of production wells and no downhole <br />construction will occur at this time. American Soda would intend to bond for downhole costs after <br />the EPA UIC permit is issued (downhole well construction is prohibited until the permit is issued). It <br />may be possible to avoid double bonding with EPA for downhole costs by petitioning the MLRB to <br />accept EPA's bond requirements as fulfilling the State's needs. <br />Also please note that, as we have discussed, the CDMG bond estimate is very conservative and <br />American Soda may file information to reduce the estimated reclamation costs at some point in the <br />future. <br />Allan -this is the same breakdown you have seen previously. <br />Paul -the lease bond of $5,000 is apparently secured by the existing exploration/test phase bond. <br />