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In 1999, Colowyo submitted TR-49, which allowed for a modification to the West Pit disturbance
<br />area. The TR-49 modifications added $31,876 to the previously calculated bond liability of
<br />$15,670,521, for a total calculated liability of $15,702,397, leaving a remauvng contingency of
<br />$297,603.
<br />In 2001, Colowyo submitted TR-50, which transferred the bond surety for exploration activities from
<br />the mine bond to an exploration bond. The TR-50 revision reduced the mine reclamation liability by
<br />$30,823, resulting in a total calculated mine reclamation liability of $15,671,574 and a remaining
<br />contingency of $328,426, based on bond liability coverage of $16,000,000.
<br />In 2001, Colowyo also submitted TR-53, which extended mining into Section 17. In conjunction
<br />with review and revision of the bonding calculations fox TR-53, an error was found in the topsoil
<br />replacement costs in the previous bond calculations. With the appropriate correction of the bond
<br />calculations to address this error, the TR-53 revision reduced the calculated mine reclamation liability
<br />by $1,568,751 to $14,102,823. Given bond liability coverage of $16,000,000, the remaining
<br />contingency amount increased to $1,897,177.
<br />The TR-56 submittal in 2002-2004, addressed changes in the postmining topography and drainages
<br />to reflect material balance and excess spoil considerations. The topographic changes, as well as
<br />updates relative to mine pit and reclamation location and status, necessitated some minor changes in
<br />the bond reclamation material movement volumes and distances. Revision of the bonding
<br />calculations to reflect these changes and updated labor and equipment costs resulted in a total
<br />calculated bond reclamation Gabihty of $19,171,621 (an increase of $5,068,798). Based on the revised
<br />calculated bond reclamation costs and the current bond liability coverage of $16,000,000, Colowyo is
<br />in the process of obtaining an additional $3,500,000 of bond liability coverage, resulting in a bond
<br />contingency of $328,379.
<br />Calculations of the reclamation bond amount, all associated plans and designs, cost documentation,
<br />and summary table are included in Exhibit 13, Bonding Information.
<br />Rule 3.02 3.02-3 Revision Date 3/31/04
<br />Revision No. TR-56
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