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SECTION VI -BONDING SUMMARY <br />The Division currently holds a bond of $235,132.00 for the Slurco Corporation, Canadian Strip <br />Mine. The Norwest Bank of Denver has issued an irrevocable letter of credit payable to both the <br />State Colorado and the Office of Surface Mining Reclamation and Enforcement (OSMRE). This <br />bond was accepted by the State on March 12, 1993. <br />The phase I bond has been released for this mine. Of the original $746,450 bond, 60% was released <br />for backfilling and grading thus reducing the bond to $298,580. On October 5, 1990, the Division <br />proposed a phase II release on 22.9 acres and withheld phase II release on 52.7 acres. On November <br />13, 1991, the Board granted a partial phase II release of the original bond and an additional release of <br />$63,488. The current bond held by the Division is $235,132. The reclamation liability estimates <br />completed by the Division in November 1986 is the estimate that the bond releases are applied to. <br />This estimated the seeding costs to be $53,240. The estimate incudes the cost of total seeding and <br />reseeding of 50% of the disturbed area for reclamation failure. With an overhead of 20% and average <br />yearly inflation of 5% the total reseeding costs estimated by this method would be $94,391 or $1,250 <br />per acre. This is a very conservative estimate. There aze two monitoring wells at $150 each. Thus, <br />the current reclamation liability is well below the bond of $235,132 held by the Division. <br />Slurco Corporation, C-81-026, Midterm Review October 5, 1994 <br />5 <br />