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The backfill creates an advancing highwall within the pit. The new highwall is at a <br />O.SH:1 V currently, and will have to be reclaimed to 3H:1 V: <br />Designed <br />reclamation slope <br />3H:1V Mined slope <br />0.5H:1V <br />The new highwall runs 700 feet across the pit. The reclamation of this highwall will be <br />completed by a dozer pushing the crest of the slope down to create the final 3H:1 V slope. <br />Therefore, warranty reduction for Vagneur Pit is determined based on the cost of <br />reclaiming the old highwall minus the cost to reclaim the new highwall. This is shown in <br />the following table: <br />Table 1 -Warranty Reduction Amount <br /> Unit Cost <br />Activity description Quanity Units ($i~y) Cost ($) <br />Backfilling of slope from 1 H:1 V to 3H:1 V <br />over a distance of 2,100 linear feet to within 3' <br />of the top of the highwall. 380,411 cy 0.68 $258,680 <br />700 feet of O.SH:1 V highwall created across <br />the front of the backfill. Quantity and cost <br />reflect material need to return to 3H:1 V, via <br />dozer. 145,477 cy 0.35 $50,917 <br />Net warranty reduction $207,763 <br />DMG Costs (21% x direct costs) $43,630 <br />Total Bond Reduction Amount $251,393 <br />