2007-11-06_REVISION - C1996084 (2)

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Iroteroffice MEMORANDUM to: Jim Stazk from: Kent Gorham subject: SL-02, Lorencito Canyon, Industrial Bond Release date: November 6, 2007 Jim, I need to ask for your assistance for modifying the Lorencito cost estimate for SL-02, Industrial Land Use bond release. As I mentioned to you, TR-14 changed the land use to industrial and included some bond reduction due to a change in the reclamation plan. The azea for industrial use, and final bond release, is 12.5 acres and includes the Lorencito haul and access road, the office azea, the Jeff Canyon haul road from the Lorencito intersection to the disturbed azea, and the coal loadout. I have reviewed the application and have identified the tasks and costs that I think aze eligible for release. It differs somewhat from the operators request for reasons yet unknown. The estimate is part of the permit (Exhibit 23) and I will need a number of pages modified. Here's a spread sheet of what I think is eligible. SL-02 Industrial Bond Release Task Comments Cost 4 load and haul bed coal 7551 8 rip JC TS base 3333 13 grade JC TS area 504 20 regrade ditches at LO 3867 37 replace TS to service area 359 58 TS to LO (TR-14 got it all) 0 hydro seed steep 70 embankments 10582 71 broadcast JC TS piles 9017 Seed LO(TR-14 got most of 72 it) 751 82 clean LO sed pond 8040 101 regrade LO 600 102 replace TS to berm 2196 TOTAL 46800 I have asked Lorencito to reclaim the sediment pond at the loadout. I have also asked why they included $25, 974.00 in their request. And finally, I need to verify that they hydro-seeded the Jeff Canyon steep road embankment.