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INTEROFFICE MEMORANDUM <br />TO. ROB ZUBER? <br />FROM: JASON MUSIC K <br />SUBJECT: G 1981-010 TRAPPER MINE 2010 MIDTERM REVIEW COST ESTIMATE <br />DATE: 5/21/2010 <br />Attached is the reclamation, cost estimate for the 2010 Trapper Mine Midterm Review. The Division <br />updated the reclamation cost estimate with costs updated in the second half of 2009. This updated <br />estimate total is $31,127,989.00. This estimate includes reclamation tasks identified in the permit and <br />includes costs for Technical Revision 106, the only revision that included an increase in liability since the <br />estimate was last updated with the 2009 Permit Revision No. 06 (PR06). PR06 updated the costs for the <br />entire site rather than just the costs for the tasks associated with PR06. This 2010 Midterm Review <br />revised cost estimate is $1,028,432 more than the current bond held of $30,099,557. <br />The cover page entitled Cost Differences - PR-06 vs. 2010 Midterm Review, identifies the changes in <br />costs and hours for equipment associated with tasks required to fully reclaim the site. The truck/loader <br />fleet and an increase of revegetation costs make up the majority of the increase. The truck/loader costs <br />represent the utilization of a loader rather than a shovel as estimated in the PR06. The revegetation costs <br />represent an increase in the cost for seed and the addition of a 20% estimated failure rate that was not <br />included in the PR06 estimate. <br />In a letter dated 1/8/2010, in the process of reviewing liability amounts, the Colorado Division of <br />Reclamation, Mining, and Safety (CDRMS) found that the permit system has produced a slight <br />discrepancy in the Trapper Mine's liability amount. The error occurs from the TR-104 decision and the <br />TR-105 decision. It appears that our permit system did not include the liability amount of <br />$19,479,903.00 approved in TR-104 for previous amount listed for TR-105, instead, using the amount of <br />$20,378,236.00. This discrepancy in our system resulted in the approved liability amounts for TR-105 <br />and PR-6 to be higher than liability required. Based on this discrepancy, the Division informed the <br />Trapper Mine that it is currently over bonded by $898,333.00. However, this amount is incorrect as the <br />reclamation cost estimate for the entire mine site was updated with PR-06 which makes the original <br />$30,099,557.00 amount correct. However, due to this discrepancy and an entire update the revised <br />change in liability amount for PR6 should be $10,391,998.00. Revised decision forms will be forwarded <br />to Trapper Mining, Inc.