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EXHIBIT L - Reclamation Costs <br /> The existing permit for the Climax Mine requires a financial <br /> warranty of $25, 275, 118; the amount presently being carried by <br /> the operation. This figure is premised on full mine build-out <br /> to a total of 10, 781 affected and bondable acres at an overall <br /> per acre cost of $2, 344. <br /> This amendment requests that the total financial warranty be <br /> reduced to $17, 976, 365 ( $18 million) . The basis for this reduc- <br /> tion is detailed by area in Appendix D. The total affected <br /> bondable acreage under the amendment is 3, 144 acres ( 3, 372 total <br /> acres less permanent water storage site acreage ) ; a figure which <br /> represents the actual affected acreage within the property <br /> boundary . The average per acre cost under the amendment is <br /> $5, 718 (range : $296/acre - $18, 318/acre ) . As in the existing <br /> permit, the amendment contains calculated per acre costs speci- <br /> fic to each of the 45 bondable sites listed under the Map ID <br /> column in Appendix D. <br /> The new warranty is based on 1988 dollars. Calculated costs in <br /> • the existing permit generally have been increased 20% to reflect <br /> current costs of labor, materials , equipment, haulage and main- <br /> tenance . For example , labor costs for revegetation in the <br /> existing permit warranty are based on $130/man-day, whereas the <br /> same costs in the proposed warranty are based on $160/man-day. <br /> In some cases, materials costs in the proposed amendment war- <br /> ranty are somewhat higher than actual costs . However, because <br /> of the highly variable nature of many of these materials costs, <br /> the higher figure has been used for warranty calculation. The <br /> Climax seed mix is an example of this situation - warranty based <br /> cost is $2. 50/lb. while actual 1988 cost is $1. 76/lb. Specific <br /> cost calculations used to develop the proposed new warranty <br /> figure in Appendix D are found in the separate spreadsheets in <br /> Appendix E. <br /> As with the existing permit, Climax proposes to recalculate and <br /> adjust reclamation costs biennially and report these adjustments <br /> to the Board in the annual report. Adjustments to the financial <br /> warranty will be made accordingly. <br /> L-1 <br />