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AANOLD ~ POl?TER Mr. Michael Long December 9, 1992 Page 2 Other reclamation obligations will be rendered futile by reclamation work to be performed by Sheridan Enter- prises ("Sheridan") on nearby land, which will require the construction of a haul road through the middle of the Bonded Area. Background In 1982, Harrison Western wished to investigate using the Bonded Area for access to the adjacent Newlin Creek Mine. At that time, GEC had finished mining the West Pit and was required to reclaim the area. Report- edly GEC was substantially underbonded, making it imper- ative that reclamation begin or a new bond be posted. Therefore, the Division helped GEC and Harrison Western develop an arrangement whereby GEC would grant Harrison Western a two-year option to use the Bonded Area to access the Newlin Creek Mine, and Harrison Western would post a reclamation bond "to satisfy bond- ing requirements of the Board pursuant to the delay in commencing reclamation of the West Pit." Option Agree- ment 7 II (Oct. 15, 1982) (attached as Exhibit A). This language indicates that the Bond was intended to secure reclamation during the option term only, which was the understanding of Harrison Western personnel who were involved with the negotiations. See Memorandum of David S. Newlin Regarding August 12, 1985 Telephone Conversa- tion with James E. Irwin, Manager, Newlin Creek Mine, Ltd. (Aug. 12, 1985) (attached as Exhibit B). Further, a representative of the Division reportedly represented to Harrison Western that the Bond would be temporary and would cover only the option period. 3d. at 2. The option requires Harrison Western to undertake reclamation work only in the event of "an increase or modification of the West Pit, Stockpile.No. 2, or the access road as they presently exist." Option at 1 III. This, again, evidences an intention that Harrison Western be responsible for reclamation work only in the event that Harrison Western itself disturbed the site. The option also specifies that if it is not exercised, GEC becomes solely responsible for reclaiming the West Pit and satisfying the bonding requirements. Id. at 7 IV.