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Rule 3: Performance [3ond Reauircments <br />3.01 INTRODUCTION <br />A performance bond has been calculated for the Lorencito Canyon Mine in accordance <br />with Rule 3.02. The bond is based on the worst-casc disturbance prgjected for the mining <br />operation. Performance bond calculations can be found in Exhibit 23 Bond <br />Calculations. <br />3.02 PERFORMANCE BOND REQUI1tLMEN'1'S POR SURFACE COAL <br />MINING AND RECLAMATION OI'ERA'I1ONS <br />3.02.1 Gcncral Requirements <br />Following review and approval ofihe bond calculations, LCC twill post the required <br />surety on the necessary form. The planned operations and reclamation plans arc detailed <br />in section 2.05.4 (Reclamation Plan) of this Permit llpplication. Should conditions <br />change requiring modifications to the plan the Division will be notified and bond <br />amounts adjusted accordingly. <br />3.U2.2 Determination o1' Bond Amount <br />The cost estimate for the reclamation is based on the conuuiimcnts for reclamation <br />treatments specified in section 2.05-4 (Reclamation Plan) of this Permit ilpplicatiun. 1111 <br />costs were calculated using the CIRCG5 Cosl Lsstimaling Sofhvarc. "I'he assumption has <br />• been made that LCC equipment and personnel required for the mine reclamation would <br />not be available for site reclamation. <br />Cost Summary Pone (Exhibit 23-1) reflects a worst-casc reclamation scenario for the <br />current permit term. 'I7~e total bond amount is estimated at approximately $2.43 million <br />for the permit term. • <br />These cost estimates include reclamation of ponds, ditches, roads, and 011 areas for the <br />.leff Canyon Surface mine operations and associated infrastructure. "I he reclamation <br />bond model includes the following assumptions: <br />• Seditnent Ponds 005, OOGa, 007, 003, 009, 009a and 010 have been conslructcd- <br />They will not be reclaimed (at the request of the landowner). <br />• Logistics and costs for soil placement arc calculated from infia'mation provided <br />by Table 2.05.4-1f Soil llistribution flan and Map 2.05.3-5 Suil Sample <br />Location and Soil Distribution Plan <br />• Three borrow areas will be utilized to enhance soil availability for reclamation. <br />Total soil placement averages 8 inches. <br />• Final contours will be comparable to pre-mine contours. <br />• The balance of necessary fill material will be truck-hauled Ihnn till 3 as necessary <br />to achieve final contour. <br /> <br />'fR-13 3- I (I -7-OS) <br />