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~.' .' JM <br />10 <br />Please have the insurance company provide a rider to add the correct permit area legal <br />description to each of the bond documents. A copy of the legal description from the <br />approved permit document is enclosed, and should be used in the rider exhibit. <br />Section VI -Bonding Summary <br />A review of the Division's performance bond file for the McClane Canyon Mine indicates that the <br />following corporate surety bonds are currently being held for reclamation of the McClane Canyon <br />Mine: <br />Bond No. 125588 $25,147.00 -Dated July 17, 1998 <br />Bond No. 125589 $68,000.00 -Dated July 17, 1998 <br />Bond No. 125591 $68,000.00 -Dated July 17, 1998 <br />As noted in the previous section, the permit area legal description was omitted from the above <br />bond documents, and a rider to each bond adding the legal description will be required. <br />The Division had recalculated the reclamation cost in association with the most recent permit <br />renewal, in December, 1996. The estimated cost was $161,147.00, which exceeded the bond <br />amount held at that time by $25,147.00. The operator submitted a certificate of deposit bond in <br />that amount which, when added to two $68,000.00 bonds already held by the Division, provided <br />the total required bond amount of $161,147.00. In July, 1998, the operator submitted the above <br />listed surety bonds to replace the three certificates of deposit. The replaced certificates of deposit <br />were released by the Division in August, 1998. The Division has recalculated the reclamation <br />cost estimate in association with TR-09, and this mid-term review. The revised reclamation cost <br />estimated by the Division is $190,037.00, and the operator has been requested to provide <br />additional bond, unless they are able to demonstrate that the current bond amount is adequate. <br />m:\coal\dtm\99mdtrm.ltr <br />