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SECTION V - PERMIT VARIANCES AND SPECIFIC APPROVALS <br />The Division has approved a variance from meeting approximate original contour for reclaimed <br />areas. The variance was approved following a demonstration that the requirements of Rule 2.06.4 <br />and 2.06.5 had been met, pursuant to Rule 4.27.3. In addition, the Division found that the applicant <br />had demonstrated that requirements of Rule 4.27.4 would be met. Information upon which these <br />findings were based can be found on pages 3-2 through 3-5 of the permit application. The landowner <br />request from the Bureau of Land Management (BLM), pursuant to Rules 4.27.4(4) and 2.06.5(2)(e), <br />is included in Appendix K, of Volume IV, of the permit application. <br />The lower portion of the disturbed area will be returned to AOC, 'but the mine bench area was <br />granted the limited variance, to allow for backfilled slopes of lesser gradient, which would meet <br />applicable stability criteria and support the approved post-mine land use. The mine highwall was <br />completely backfilled, with the natural sandstone outcrop that forms a near vertical face above the <br />portals to remain undisturbed. <br />SECTION VI - BONDING SUMMARY <br />The Division holds an approved bond on behalf of the permittee for the McClane Canyon Mine. The <br />bond is a Corporate Surety from Travelers Casualty and Surety Co. of America, Bond No. <br /> in the amount of $319,280.00. Pursuant to Rule 3.02.2(4), the Division conducted a <br />review of the McClane Mine reclamation liability, in association with this midterm permit review. We <br />have prepared an updated cost estimate (enclosed as Attachment 1.). The new liability is $369,156.00. <br />This liability is $19,879.00 more than the current liability and $49,876.00 more than the current bond <br />held (of $319,280.00). This estimate is a cost update of the Permit Renewal 06 estimate with costs <br />for Technical Revisions 15 and 16 included and updated as well. McClane Canyon Mine, LLC will <br />need to submit an additional $49,876.00 in bond monies. <br />5