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Item 24: Rule 3.02.1(7). The TCC bond for permit C-1982-056 is not sufficient to cover <br />reclamation costs. As of November 2, 2010, the Division estimates liability at the Foidel Creek <br />Mine is $9,817,927.00. This amount is sufficient to assure completion of the remaining <br />reclamation work at the site if the work had to be performed by the Division, including the cost <br />of re-establishing vegetation on any revegetated areas, should those areas fail. The permittee <br />currently has on deposit with the Division one Travelers Casualty and Surety Company of <br />America bond in the amount of $9,323,701.00 and one Federal Insurance Company bond in the <br />amount of $439,388.00 for a total of $9,763,089.00. <br />Based on the updated costs of associated revisions, the direct costs for all reclamation tasks is <br />$7,894,026.00 compared to the direct costs associated with Permit Renewal No. 5 of <br />$7,924,449.21. Indirect costs consist of the Overhead and Profit costs and the Legal, <br />Engineering, and Project Management costs. Overhead and Profit costs consist of Liability <br />Insurance (% of direct cost), Performance Bond (% of direct cost), Job Superintendent (hourly), <br />and Profit (% of direct cost) which make up the Contract Amount (direct cost + Overhead and <br />Profit). The Legal, Engineering, and Project Management Costs consist of Engineering Work (% <br />of contract amount), and Reclamation Management (% of contract amount) for a Total Indirect <br />Cost. The Division's Permit Renewal No. 5 reclamation cost estimate inadvertently estimated <br />the Legal, Engineering and Project Management costs as a percentage of Direct Costs rather than <br />the Contract Amount. Please submit additional bond in the amount of $54,838.00 to cover <br />the total reclamation costs associated with the site. <br />Foidel Creek Mine -8- 11/3/2010