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Gorham, Kent <br />Page 1 of 2 <br />From: Gorham, Kent <br />Sent: Tuesday, November 06, 2007 4:46 PM <br />To: Ron Thompson (ronthompson@wildblue.net) <br />Cc: Stark, Jim <br />Subject: Lorencito SL-02 Adequacy Review <br />As per our phone conversation, here is more detail concerning the questions the Division has regarding the <br />Lorencito industrial bond release. <br />1. We. cannot verify or determine the origin of the requested amount for release of $25, 974.00 included in the <br />application. <br />2. It did not appear that the amount for bed coal in task 4 (Exhibit 23) for was included but it likely should be. <br />3. I need to field check that the steep road embankment along Jeff Canyon haul road was hydro-seeded. <br />Also the acreage value of 12.5 seems small. From my records, I think that the acres included in this release <br />request should be as follows; <br />4.5 loadout <br />4 service area <br />.5 office area <br />22.20 JC and Lorencito haul roads (divided as you see fit but which would be consistent with about 4.5 miles of <br />road at a 40 foot width) <br />27.6 Total acres subject of the industrial bond release. <br />This would leave 127.6 acres under the liability of Lorencito after this bond release. When you subtract 4.1 acres <br />for the ponds that remain (and one way or another will stay as permanent) that leaves 123.5 acres. This final total <br />is consistent with the addition of the 1.4 acre borrow area disturbance added to the agreed upon value of 122.1 in <br />2004 following a detailed review of acreages. <br />Here is the text from an email I sent Jim Stark regarding the actual dollar amounts. <br />[start stark memo] <br />I need to ask for your assistance for modifying the Lorencito cost estimate for SL-02, Industrial <br />Land Use bond release. As I mentioned to you, TR-14 changed the land use to industrial and <br />included some bond reduction due to a change in the reclamation plan. The area for industrial <br />use, and final bond release, is 12.5 acres and includes the Lorencito haul and access road, the <br />office area, the Jeff Canyon haul road from the Lorencito intersection to the disturbed area, <br />and the coal loadout. <br />I have reviewed the application and have identified the tasks and costs that I think are eligible <br />for release. It differs somewhat from the operators request for reasons yet unknown. The <br />estimate is part of the permit (Exhibit 23) and I will need a number of pages modified. Here's a <br />spread sheet of what I think is eligible. <br />11/7/2007 <br />