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March 31, 2009 <br />Re: Seneca II Mine (C-1980-005) <br />SL03 Phase II Bond Release Request BRB2 and BRB3 <br />Reclamation Cost Estimate Summary <br />The Division has completed a revised cost estimate for remaining reclamation liability following <br />the proposed Phase II Bond Release SL-3 at the Seneca II Mine. The new estimated cost for <br />reclamation of the interim and permanent program areas is $4,050,665.00. Estimated costs for <br />the pre-law areas remain unchanged at $285,484.00, so the total required performance bond for <br />the site will now be $4,336,149.00. The required liability will be reduced by $1,975,695.00. The <br />full cost estimate is available in the DRMS files. <br />Aside from the obvious reduction owing to our Phase II release proposal, there are other <br />changes in the estimated reclamation costs, mainly due to rising labor, equipment, and <br />materials costs. A brief summary of those changes follows. <br />Worksheet 00b: The total cost of reclaiming the remaining Wadge area access road rose <br />slightly because of higher equipment operating costs. <br />Worksheet 00c: As noted by SCC, the majority of the cost for these tasks is sealing of the wells. <br />Two years ago we did some research on well sealing costs which resulted in a reduction in our <br />estimated costs for well sealing, thus the total amount for this worksheet is reduced <br />considerably. Costs for reclaiming the ditches and truck wash ponds increased slightly due to <br />higher equipment operating costs. <br />Worksheet 00d: The total cost of reclaiming the landfill area rose slightly because of higher <br />equipment operating costs. <br />Worksheet 00e: The total cost of constructing postmine drainages rose slightly because of <br />higher equipment and materials costs. <br />Worksheet 00f: The total cost of facilities area reclamation increased significantly due to higher <br />equipment operating and labor costs, particularly for demolition of buildings.