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,Vh% Peter Ha vs <br />R6: Connell Resources, Inc. - Raindance Sand and Gravel refine <br />July 10, 2008 <br />Page 2 of 2 <br /> Unit Cost <br />Aspect Reclamation Operation Quantity Units ($) Cost ($) <br />A Seeding <br /> 1. Re-seed Reservoir Cut Slopes 4.0 Ac 800 3,200 <br /> 2. Re-Seed Stock -pile and Plant Site 6 Ac 800 4,800 <br />ITotal Direct Costs $8.000 <br />Overhead and Profit (14% of Direct) $1,120 <br />'focal Direct and O&P Costs $9,120 <br />Enuiwcrinc and Proiect Management (5% of Direct and O&P $456 <br />Total Proposed Financial Warranty $9,576 <br />Disturbed Acreage 10 <br />Financial Warranty per Acre $958 - <br />From the original bond amount, and values from the table, a bond reduction to $9,576 is requested for the <br />Raindance Sand and Gravel Mine. <br />Additionally, an inspection of the site was completed on May 1, 2008 noting concerns regarding <br />completed reclamation standards. These included the remaining haul road, product piles and black/grey <br />material within the reservoir, as well as a lack of adequate vegetative cover. <br />Per the letter to Carl Mount dated June 4, 2008 from R.J. von Bernuth, the unidentified black/grey <br />material and the substance was identified as bentonite, which was excess material from the construction <br />of the reservoir liner that has been established and tested successfully. <br />The haul road is expected to remain in place until the excess material in the reservoir floor has been <br />removed. Reclamation efforts will continue and adequate vegetative cover will be achieved before a <br />final release is requested. <br />Landowner names and addresses are provided below: <br />Martin Lind <br />1625 Pelican Lakes Pt., Ste. 201 <br />Windsor, CO 80550-0550 <br />If you have any questions or require additional information, please call our office. <br />Sincerely. <br />Applegate Group, Inc. <br />Thompson <br />Natural Resource Specialist <br />TAT/ta <br />Attachment <br />cc: John Warren, Connell Resources, Inc. <br />AG File 406-154 <br />W06154 Raindance Reservoir\Diseiplines (rechnical)1Mtne PlanningRaindanec Bond Reduction Request 4-24-08 (superseded Final Release 4-24-08 letter).doc