2011-04-07_REPORT - M1980244

• Permit No: M1980244
• IBM Index Class Name: REPORT
• Doc Date: 4/7/2011
• Doc Name: Annual Fee/Report/Map
• From: CC&V
• To: DRMS
• Permit Index Doc Type: Annual Fee/Report
• Email Name: BMK
• Media Type: D
• Archive: No

Mr. Berhan Kefflew
April 8, 2011
Page 14
The current reclamation/closure liability includes:
$44,713,931 Reclamation Cost Estimate prior to MLE Amendment 9
$36,594,665 Construction Phase of MLE Amendment 9
$4,420,000 Current portion of Phase 5 VLF
Equals:
$85,728,596 MLE Reclamation Cost Estimate w/ partial Phase 5
Additional Reclamation Cost Estimates submitted since approval of MLE Amendment 9:
$133,866 Technical Revision # 58
$17,207 Technical Revision # 59
Equals:
$85,879,669 Current Reclamation Cost Estimate
Financial Warranty Instruments: Per 2CCR 407-1, 407-4, and Rules 1.15(1)(a)
• Financial Warranty/Letter of Credit No. from the Dresdner Bank AG,
New York Branch, in the amount of $33,331,600.00, was submitted to DRMS on
July 16, 2004.
• On November 1, 2010, DRMS accepted the submittal of a rider to the Bank of
Nova Scotia Irrevocable Letter of Credit No. to increase the
amount to $45,120,000 (an increase of $4,420,000 to cover initial portion of
Phase 5 VLF) for the Cresson Project.
• In addition, Liberty Mutual Surety Bond No. was increased to
$7,922,271.21 on April 30, 2004.
These financial instruments, providing a total financial warranty of $86,373,871, have
been accepted by the DRMS and continue to demonstrate the sufficiency of the value of
the Cresson Project Financial Warranty. This leaves a current surplus of financial
warranty of:
$86,373,871 Posted Financial Warranty
$85,879,669 Current Reclamation Cost Estimate (partial Phase 5 VLF)
$494,202 Current Surplus
Additional reclamation liability to be bonded in 2011:
$13,266,069 Remainder of Phase 5 VLF liability
Total Reclamation Cost Estimate with 100% of Phase 5 VLF and current TRs:
$99,145,738