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landfill. This cost ranged from $0.5686 to $0.5912 per cubic foot, depending on the height of the <br />structure. In comparison, at the Climax Mine the Division was able to use a cost in the range of <br />$0.1090 to $0.1755 per cubic foot because the material was slated for disposal on site. If the <br />operator revises the permit to dispose of structures on site, then that portion of the bond estimate <br />can be reduced. <br />2. The operator may provide the Division additional detail or information that may reduce the <br />estimate. In some cases, the Division had to make assumptions regarding certain reclamation <br />tasks and their associated cost. Such assumptions were made when the information in the permit <br />was vague or did not address a certain reclamation task. The Division consulted with members of <br />DMG staff, employees from the Henderson Mine and various contractors to determine a <br />reasonable assumption and cost. If the operator feels any of these assumptions or costs can be <br />reduced, the Division is willing to make such changes with a sufficient demonstration that lower <br />costs aze appropriate. <br />3. The operator may perform some reclamation on site to reduce the reclamation liability. If the <br />operator has or is in the process of completing any reclamation on site, the operator may request <br />a release in writing under Rule 4.16 of the Hazd Rock/Metal Mining Rules and Regulations. ff <br />the Division approves such release request, then the bond estimate can be revised accordingly. <br />4. The operator must submit additional financial warranty in the amount of $44,562,000.00 within <br />60 days of receipt of this letter (for a grand total of $54,695,000.00). This number is subject to <br />change based on the options noted above prior to the end of the 60 days. <br />A copy of calculations used to determine this cost is attached for your review. Thank you for your <br />assistance, and that of your staff, regazding information requested by the Division used to complete <br />this estimate. If you have any questions about this process or how the bond was calculated, please <br />contact me at (303) 866-4943. <br />Sin rely, , ^ <br />~,`t~{~ <br />Erica S. Crosby <br />Environmental Protection Sp ist <br />cc: Ron Cattany; DMG Acting Director <br />Bruce Humphries; DMG (via electronic transmission) <br />Carl Mount; DMG (via electronic transmission) <br />Allen Sorenson; DMG (via electronic transmission) <br />Bazb Chiappone; DMG <br />Enclosure(s) <br />Certified Mail # 7099 3400 0015 1443 9553 <br />