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Under the maximum disturbance bond reclamation scenario, both the East and West Pits would be recontoured to establish positive drainage. During the next five-year bond term, Colowyo identified the bonding scenario where the Section 16 final pit remains open, and the East and West Pits are at their maximum depth and disturbance. In order to present a bond reclamation cost estimate, which accurately represents actual site conditions and the anticipated difficulty of reclamation, Colowyo has utilized standazd engineering and cost estimating practices, published reference sources, and applied appropriate regional adjustments. 3.0 METHODOLOGIES AND ASSUMPTIONS -SPECIFIC APPROACH Deternnation of the bond amount necessary to provide for complete reclamation of the mining disturbance azeas and associated facilities involved a series of logical steps: • Identification and delineation of disturbance areas • Determination and sequencing of required reclamation functions • Determination of material handling requirements and delineation of haulage routes • Selection of appropriate reclamation equipment • Calculation of equipment productivities • Determination of equipment hour and fleet requirements • Development of equipment, labor, demolition, and revegetation unit costs • Calculation of total costs for each reclamation activity • Development of cost estimates for project overhead, contractor profit, and contract administration • Determination of the total bond reclamation cost The following sections describe the assumptions and procedures utilized in developing each component of the bonding cost estimate. 4.0 IDENTIFICATION AND DELINEATION OF DISTURBANCE AREAS As previously noted, Colowyo evaluated specific factors, which could impact reclamation costs to identify a maximum disturbance scenario. Using this scenario, Colowyo then delineated all mining and related disturbance on a current topographic base map. 3 Revision Date: 5/8/03 Revision No. TR-56