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Stipulation No. 35 The operator shall submit a technical revision which will address the issue of additional subsidence monitoring for panels 19-23, 24- 30, and 31-38 prior to the onset of mining these areas but no later than June 1, 1995. This stipulation has been complied with through the submission and approval of technical revision No. 22 which was approved on July 26, 1995 IV. Bonding The current reclamation bond for the Bear Mines No. 1, 2 and 3 is $155,000.00 as secured with U.S. Treasury Note #636751, CSUIP #912827L75. This note was issued on 8/16/93 and is set to expire on 8/15/96. The current reclamation liability is listed as $154,617.00. During the course of this review the reclamation cost estimate was recalculated using 1995 costs for structural demolition and equipment operation. The results of this review indicate that most costs associated with the various reclamation tasks have increased; therefore, the reclamation liability for the Bear Mine has increased by $18,539.00 to $173,156.00. A copy of the revised bond calculation is attached to this document for your review. In addition to updating costs associated with performing reclamation tasks, salvage values for the structures and the operator's cost estimate for concrete removal have remained the same in the estimate. However, according to salvage credit policy for the Bear Coal Company, Bear must provide three new salvage estimates, the statement of the facility condition and a new UCC lien search. If this information is not updated or is otherwise found to be inadequate, the reclamation cost may be further revised to exclude salvage credit, thereby increasing the reclamation liability further. Please review the completed bond estimate and submit the information requested in paragraph 3 of this section along with any questions about the new cost estimate. Upon receipt of this information the Division will review it for completeness and determine if additional changes need to be made. At that time, the Division will finalize the increase that is required and request that Bear Coal Company amend their existing bond to cover the increase in the reclamation bond. This can be accomplished through the bond instrument of your choice that is acceptable per rule 3.02.4 of the Regulations of the Colorado Mined Land Reclamation Board for Coal Mining. If no additional changes occur between now and then, the reclamation bond will need to be increased by $18,156.00 (this figure takes into account the $383.00 difference between the current required liability of $154,617.00 and the actual bond of $155,000.00).