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INTEROFFICE MEMORANDUM TO: Dan Mathews FROM: Jim Stark SUBJECT: Munger Canyon Mine RN-OS Cost Estimate DATE: 3 October 2007 Attached are the revised task sheets for the Munger Canyon Mine's Permit Renewa105 reclamation cost estimate. There are six revised sheets (a summary sheet and tasks 012, 013, 023, 033 and 034). These new task sheets will replace the corresponding sheets in the estimate you currently have. Based on the changes detailed below, the new liability for the Munger Canyon Mine is $269,094.00. This is an increase in liability of $30,245.00 over the previous estimate calculated for Permit Renewal OS (dated 25 July 2007 with a liability of $239,652.00). The Division currently holds a corporate surety in the amount of $230,000.00 so CAM Mining, LLC will need to submit additional bond monies. The first change was to the demolition task sheet (task 012). The length of fencing required following reclamation and seeding was increased from 1,8501inear feet to 8,020 linear feet in Technical Revision 22. The required length of fencing was taken from Figure 2.2-7C and Figure 3.1-5. The second change was to one of the revegetation task sheets (task 013). This task was modified to reflect the nature of the reseeding and mulching at the Munger Canyon Mine following reclamation. Since all equipment access has been blocked to the portal and upper haul road area, the seeding and mulching methods have been changed to hand seeding and mulching. Information was taken from Figure 2.2-4 and current site conditions. The third change was to the stream channel erosion protection task (task 023). This task was modified to reflect the changes incorporated in Technical Revision 22, with the addition of geotextile and riprap to the reconstructed drainages aY the site. The specifications for the drainage channels were taken from Table 3.9-3.