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Parkdale Quarry Amendment #1-Bond Phasing Calculations <br />April 2008 <br />GRANITE QUARRY <br />The aspects associated with each reclamation phase were calculated using similar methods and <br />assumptions. All phases of the Granite Quarry Reclamation calculations originated from the year 8 <br />(Phase I) bond calculation. Therefore, Phase I is described in greater detail than Phase II and Phase III. <br />Granite Quarry Reclamation Phase I (Year 8 <br />This phase of the Granite Quarry operation is characterized by active mining in Area 2 and concurrent <br />reclamation in Area 1 as described in the mining plan. For the purpose of the bond calculation, it is <br />assumed that the backfill of the active reclamation area is 50% complete down to approximately 5800- <br />feet. <br />Aspect A includes the cost of backfilling 50% of approximately 2570 linear feet of the top 5 benches. <br />This aspect also includes replacing topsoil to 6-inches, seeding and mulching, and reseeding the <br />disturbed area. <br />Aspect B assumes the processing plant and ancillary equipment will be removed by the operator. In the <br />event that the operator abandons this equipment, it is assumed that the cost of removal will be offset <br />by the sale of the processing plant and ancillary equipment. This aspect also includes the cost of <br />scarifying the compacted ground, replacing topsoil to 6-inches, seeding and mulching, and reseeding the <br />disturbed area. <br />Aspect C includes the cost of backfilling approximately 1,310 linear feet of the active mining face in Area <br />2. This aspect also includes the replacement of topsoil to 6-inches, seeding and mulching, and reseeding <br />the area. <br />Aspect D assumes approximately 20 acres of Area 3 has been stripped in preparation for mining. This <br />aspect includes the cost of replacing topsoil to 6-inches, seeding and mulching, and reseeding the area. <br />Aspect E includes the costs for reclaiming the stormwater ponds and associated stormwater culvert. <br />Specific calculations were based on costs associated with backfilling the stormwater ponds to grade, <br />removal of the metal stormwater culvert, and backfilling, seeding and mulching, and reseeding the <br />disturbed area. <br />Aspect F assumes the entrance road to the quarry site will remain after reclamation. This aspect <br />includes the reclamation costs associated with approximately 2-acres of interior access roads. In <br />particular, this aspect includes the cost to scarify the compacted ground, replace topsoil on interior <br />roads to 6-inches, seeding and mulching, and reseeding the disturbed area. <br />4~Page <br />