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Bond <br />Prior to the current Midterm Permit Review, the reclamation cost estimate for the King I and II <br />Mines was most recently updated in 2007, using unit costs from 2006. As part of the current <br />Midterm Permit Review, the Division has prepared the attached updated estimate. The updated <br />total for the reclamation cost estimate is $854,596, an increase of $448,345 compared to the <br />existing reclamation liability of $406,251. Based on the updated estimate, the Division proposes <br />to adjust the amount of reclamation bond required for the King I and II Mines to $854,596. <br />Please notify us by March 10, 2010 if you wish to request an informal conference pursuant to <br />Rule 3.02.2(4) or a formal hearing pursuant to Rule 2.07.4(3). If we do not receive such a <br />request by that date then we will proceed with the proposed adjustment of required reclamation <br />bond. <br />PART III - COMMENTS AND REQUESTED REVISIONS <br />OF PERMIT APPLICATION <br />The Division's Midterm Review has found that permit application C-81-035 needs the <br />modifications and updated information described below. The purpose of the modifications and <br />updated information is to ensure compliance with Rule 2.03.2(l), which requires information in <br />the application to be current, clear, and concise. As a result of this finding the Division requests <br />that the permittee submit revised permit pages in a Minor Revision by March 1, 2010. <br />1. Please add to section 2.05.4 of the both King I and II permit application documents <br />wording to the effect: "All necessary county and state approvals will be obtained prior <br />to burying any demolition debris on the site." <br />2. Please add to the description of the King II sediment control pond in section 2.05.3 of the <br />permit application a sentence or two describing the operation of the principal and <br />emergency spillways, including when the spillways are open and closed, and the <br />minimum magnitude of storm event that will cause them to discharge. <br />3. Please confirm that the waste rock storage area (map item "W") is shown on Map King <br />II-007. Please add it to the map if it is not shown. <br />4. Please add to the permit application a description of the status of the water augmentation <br />plan and transfer of water well rights that were in preparation in response to the <br />memorandum that DRMS received during the review of Permit Renewal 5 from the <br />office of the state engineer, dated March 12, 2007 (see Permit Stipulation 17, above). <br />King I and II Mines Page 5 January 29, 2010 <br />Midterm Review