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Binns, Janet <br />From: Kipp, Danny [Danny. Kipp@MOLSONCOORS.COM] <br />Sent: Thursday, October 15, 2009 2:17 PM <br />To: Binns, Janet <br />Cc: MacDonald, Don <br />Subject: RE: Surety reduction (SR1) <br />Hi Janet <br />As per our phone call Coors Energy would like you to keep moving forward on the phase release III bond release. We <br />also would ask for the Surety reduction $37,666.00 but at this time we don't wish to have an informal hearing . thank <br />you Danny Kipp <br />From: Binns, Janet [mailto:Janet.Binns@state.co.us] <br />Sent: Wednesday, October 14, 2009 10:04 AM <br />To: Kipp, Danny <br />Cc: MacDonald, Don <br />Subject: Surety reduction (SRI) <br />Good morning Danny, <br />Thank you for returning my phone call this morning. <br />Attached please find DRMS' letter to Coors Energy Corp regarding the Division's proposed Bond Reduction. I understand <br />that Don is unavailable for the next 2 weeks. If you, or another Coors representative, could respond either way whether <br />or not CEC wishes to have an informal hearing regarding the bond reduction, that would allow us to proceed with SL4. <br />To summarize quickly, CEC requested phase III bond release of $249,331.00 on 165.29 acres. This value was calculated <br />from: <br />$4,402,022.00 (determined to be "applicable bond amount" to calculate from-see SU findings) <br />$4,402,022.00 X 15%=applicable Phase III bond for entire permit area=$660,303.00 <br />CEC is requesting Phase III Bond release on 165.29 acres. 165.29ac./437.39ac.=37.76% <br />$660,303.00 x 0.3776=$249,331.00 <br />So now we come to SL4. The Division had updated equipment operating costs and labor costs in August 2009. When I <br />calculated the cost of reclamation of all remaining tasks prior to the approval of SL4 the total required bond amount = <br />$2,289,771.00. <br />The difference of the currently held bond $2,327,437.00 (RN5) minus $2,289,771.00 needed to be retained prior to SL4 <br />approval, equals $37,666.00. This $37,666.00 is the amount the Division proposes to reduce (SRI) CEC's bond by. <br />Removing the applicable Phase III tasks from the Division's bond release calculations results in an estimate of <br />$2,121,860.00 that the Division needs to retain after SL4 approval. Therefore, SL4 will be able to grant Phase III bond <br />release of $167,911.00 (=$2,289,771.00-$2,121,860.00). <br />Due to the regulations we have to consider these 2 steps; Surety Reduction No. 1 (SRI) in the amount of $37,666.00, <br />and Bond Release No. 4 (SL4) in the amount of $167,911.00. So the total amount that CEC will end up having "refunded" <br />will be $205,577.00.