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i <br />Susan McCannon -2- July 17, 1995 <br />3. NCIG submits a bid or an estimate of the cost to perform <br />the additional reclamation work required by the technical <br />revision. The bid or cost estimate will include the work <br />required to repair the slump over the east portal. <br />4. The DMG agrees to determine the amount of bond to be <br />released by subtracting the agreed upon item B3 cost from <br />the phase I bond release amount of $172,800. <br />5. The Board agrees to amend DMG's bond release decision so <br />the amount calculated in B4 above is released before the <br />work called for by the technical revision in undertaken <br />by NCIG. <br />6. DMG and the Board agree the actions called for in B4 thru <br />B7 will be completed in sufficient time for NCIG to <br />complete the work called for in the plan before October <br />31, 1995, assuming NCIG submits the Technical Revision <br />application no later than August 4, 1995. <br />7. DMG agrees to conduct a final inspection of the site <br />before November 15, 1995. <br />C. The Board agrees to release the balance of the $172,800 as <br />soon as the work called for in the reclamation plan is <br />completed, inspected and approved. <br />The application for a technical revision will address the following <br />issues: <br />1. Stabilization of the terrace outslopes; <br />2. Backfilling of the cut slope at the east end of the mine; <br />3. Removal of culvert C3; and <br />4. Disposal of waste rock. <br />This agreement is only valid if OSM agrees NCIG's approved <br />reclamation plan conforms to Colorado's approved program and DMG <br />confirms in writing its agreement with the provisions in B. and C. <br />above. <br />NCIG urges DMG to perform its topsoil depth survey of the reclaimed <br />areas within 60-days. <br />Please call if you have any questions. <br />Sincerely, <br />Jim/~ P.E. <br />Consulting Engineer <br />cc: Rushton Backer <br />