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INTEROFFICE MEMORANDUM <br />TO: DAN I-II?RNANDB'!, ~`~ <br />FROM: JANIi"I' HINNS _ ~~~ ,. ` <br />SUBJECT: NOI X-2007 42-1 ?NISI?D :CL\1LA'I'ION COST E51'Itif:\'I'H s <br />DATE: 7{3/2007 <br />Westem Fuels representatives, George O'Haza and Ivlurari Shtestha contacted me June 22, 2007 regarding assumptions <br />I had made while calculating a reclamation cos[ estimate for NOI-2007-142-10. The NOI application proposes to drill <br />98 exploration holes, plus an additional 20 holes will be twinned. On June 22, 2007, Westem Fuels, Inc. Eased <br />additional detail of exploration sealing procedures that they would employ to seal the proposed holes. The proposed <br />holes aze relatively shallow, 70-200 feet deep, with an average of 135 feet deep. Drilling will be conducted with an <br />air/mist/foam unit and will hate a self contained mud pump. As such, mud pits will not be constructed. Drilling mud <br />and bentonite chips will be used to seal the holes along with a secrete plug. This sealing method is consistent with that <br />approved in Westem Fuels New Horizon Mine, TR54. <br />Reclamation will consist of sealing the holes as described in the application, raking out any cuttings that may remain on <br />the surface, and broadcast seeding the affected "drill pad" area. After discussion with George O'Hara on June 11, 2007, <br />we agreed that each "drill pad" area would be approximately a ZS' radius around the drill hole. Although the operator <br />does not anticipate disturbance of the surface for overland traffic to each hole off the county road, I have included 0.6 <br />acres of seeding for potential travel corridor improvement. Due to the harsh conditions in this region of the state, the <br />Division includes a 25% reseeding rate (consistent with the reseeding rate used in the New Horizon estimate). <br />With the additional detailed information provided by the operator, the Division's revised estimate for reclamation of the <br />proposed exploration drill holes for NOI X-2007-142-010 is $34,125.00. The operator did not include estimated costs <br />for reclamation in the application packet. Please fmd reclamation cost estimate forms using the Division's CIRCES <br />program, included with this memo, along with documentation of equipment cost printouts. <br />