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r Page 3 Mr. John Ward March 3, 1981 2. Mill Site. Construction on the essentially complete by the end start-up checks remaining to be part of 1981. The main public rado Highway 9 to the mill site paved. 4th grinding mi.Ll was of 1980 with on:Ly made during the first access road from Colo- and 1 mile north was Timber was cleared from the tailing deposition basin up to the 8,750' contour. Merchantable timber was sold and the rest was made available to employees fox- firewood. Biannual computation of reclamation costs/surety (a:. specified by the Board) was done in February, 1980, for the 1980-81 period and included with last year's annual report. 'I`he surety increase was acted on by The Board in October, 19Et0, and the bond was posted in January, 1981. Therefore, no update of costs/surety are included in this annual report. However, sub- mittal of the amendment in January, 1981, precipitated a complete recalculation of all reclamation costs, and we expect to readjust the bond accordingly upon approval of the amendment. Our original application indicated we might request bond release on certain reclaimed areas at this time. Even tY~ough reclamation progress is on schedule, we prefer not to claim any acreage as entirely reclaimed and do not request complete. surety release on any acreage. We wish to continue posting bond. for these areas because 1) the vegetation could use more time: to mature, 2) the areas serve as buffer zones, and 3) the Company wishes to retain the flexibility of possibly trading some completely reclaimed lands for unforeseen projects which may require us to expand beyond presently delineated affected lands. Please find enclosed a check for $275.00 for the annual fee as required by Rule 2.42. Sincerely, l~ Charles L. a on Environmental ontrol Engineer CLJ:mb enclosure David W. Delcour Vice-President and Director, External Affairs