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performed by a third party, to be $130,391.00. Therefore the amount we are proposing to release is <br />$148,833.00. <br />Attached is a table which includes each of the original reclamation tasks from the currently approved <br />reclamation cost estimate, the amount requested for release by Bear Coal Company, and my estimate of <br />the amount that will be released for the Phase I request. The figures shown as negative dollar release <br />amounts are tasks that have increased in cost since the last estimate. Increases are primarily due to <br />rising labor, equipment, and materials costs. Unfortunately, costs have increased since I last estimated <br />the Phase I bond release amount (April 2009, with BCC's preliminary submittal). <br />Tasks with proposed release amounts less than those proposed by the operator: <br />Task 2: The operator estimated that 44% of the original area would not be eligible for release. <br />This area appears to be an accurate acreage figure, but didn't apply to the volume of material to <br />be moved. I estimated that 49% of the material that had been regraded was not included in the <br />Phase I bond release request area. The volume figure used in the task reflects 49% of the <br />original estimated volume. <br />Task 9: The operator's request was based on all three portal seals meeting Phase I release <br />standards. Your March 31, 2009 e-mail indicated that release would only be possible on the <br />ventilation shaft. Costs to seal the main entry and beltline entry have been retained, and those <br />costs have increased due to rising costs for labor, equipment, and materials. <br />Tasks 7b, 11, 12, 13, and 17: Costs have increased due to rising costs for labor and materials. <br />Tasks with estimated release amounts in excess of the operator's request: <br />Task 5: The cost to remove the flood control dike has been removed. Your March 31, 2009 e- <br />mail stated that the dike has been approved for permanent retention. <br />Task 8c: This cost was removed since the fencing will remain in place on a permanent basis. <br />Tasks 3, 4, 6, 7, 8b, 14b, and 18: Costs have decreased due to decreased equipment operating <br />costs. <br />A copy of my reclamation cost estimate is attached. Should you or the operator have any <br />questions or need additional information, please let me know. <br />Enclosures <br />cc: Sandy Brown (w/out attachments) <br />Page 2 of 3