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FECLA8ATI04 COSTS <br />COST JUSTIFICATION <br />• MAXIMUM OPERATIONAL AREA: This is an estimated value. In the mining plan it <br />is stated as being about 25 acres. A 35 acre value is used in order to provide <br />for a margin of error in the operational area and to provide for the few roads <br />which might be needed outside of the actual extraction/processing/stockpiling <br />area. <br />GRADING: Keeping in mind that once the gravel layer has been extracted, the <br />surface produced will be very near the final grade. Therefore, grading should <br />be able to be completed with relative ease. Also, most areas needing grading <br />will be on essentially level ground. It is reasonable to assume that <br />inexpensive equipment could be used in the grading and the grading will involve <br />primarily a smoothing of the surface in preparation for the placement of the <br />topsoil. <br />TOPSOIL REPLACF;MQI'P: On this site, an average of about 10" of soil will be <br />placed on areas to be reclaimed. The plan calls for a minimum of 8". A rate <br />of $.75 per cubic yard is reasonable because haul distance will be short, the <br />topography essentially level, and therefore high speed and high volume scrapers <br />could replace the soil rather quickly and inexpensively. <br />SEEDING: Seed costs vary widely and cannot be predicted with any certainty. <br />However, the seed proposed in the reclamation plan is usually quite available <br />and usually not too expensive. <br />FERTILIZER: Fertilizer costs vary with the price of oil and therefore cannot <br />• be predicted with certainty. The assumption of 5100 per acre is a fair <br />estimate. <br />MAINTENANCE: It is known that in most cases some maintenance of revegetation <br />areas is needed prior to bond release. A S50 per acre amount seems reasonable <br />considering the revegetation areas will be generally level (minimal water <br />erosion problem). The amount provides for erosion damage correction, spot <br />seeding of areas which do not take on the first seeding, weed management, fence <br />maintenance, and other activities needed to properly insure the land is <br />revegetated. <br />• page 2 of 2 E•.thibit L <br />