2008-11-20_PERMIT FILE - M2008078 ‎(4)‎

• Permit No: M2008078
• IBM Index Class Name: PERMIT FILE
• Doc Date: 11/20/2008
• Doc Name: New Appl., Ex. L- Reclamation Cost
• From: GP Ranches, LLC
• To: DRMS
• Media Type: D
• Archive: No

EXHIBIT L
Reclamation Cost
A phased and cumulative bonding approach is proposed for the West Farm Pit operation. The
financial warranty required for each phase is the warranty required to completely reclaim that
phase.
The financial warranty required for each phase of mining includes a cost component for the liner
required to close the current mined area should project be stopped. Because the liner required
to close the current mined area for each phase of mining is replaced with a new liner required to
close the current mined area component as the next phase of mining occurs, the financial
warranty required for this component for the previous phase is credited back in each phase's
required financial warranty calculation. This accurately calculates the additional financial
warranty required for any given phase of mining and for the current limit of disturbance as well
as account for the financial warranty that has already been posted to insure that the Division
has sufficient cumulative financial warranty to complete the reclamation.
Direct costs related to the construction of the reclamation components that have been included
in the financial warranty calculations include: Scarifying disturbed ground surfaces, re-applying
topsoil over disturbed areas, revegetating disturbed areas, dewatering the full pit, shell zone and
core zone liner construction, and contractor mobilization. The shell zone and core zone liner
construction costs have been broken down further to include costs for ripping clay shale, hauling
and placement of clay and overburden, blending and moisture conditioning fill materials,
compaction of fill materials, and quality assurance/quality control of the fill materials.
Overhead, profit, and project management costs were then calculated and added to the direct
construction costs to arrive at the required financial warranty for each phase.
As each new phase is started, the financial warranty for that phase will be posted with the
Division. When a phase has been reclaimed, inspected, and accepted by the Division, the
associated financial warranty for that phase can then be reduced/released to 20% of the
financial warranty required for that phase.
Please see the attached calculations for details of the costs and quantities used to determine
the financial warranty required for each phase of mining.
The following table summarizes the financial warranty required for each phase, and the
cumulative financial warranty that will be provided during any given phase.
4 m GP Ranches, LLC.
?' JsT Consulting, Inc. West Farm Pit
DRMS 112 Permit Application
88