2005-07-11_GENERAL DOCUMENTS - M1977342

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07/11/2005 08:06 FAX Q005 agreed to between the Division and the Operator, the Division ciarently estimates it to be approximately $30,000,000.00. 3. To satisfy the increased bonding requirement in part, the Operator has offered three unrecorded deeds of trust ("Deeds of Trntst'l to the Division appraised at a combined total of 511,265,000.00. Copies of the Deeds of Trust for the Henderson Mine and Mill's incidental water rights, the Skylark water rights and the Williams Fork pump station, respectively, are attached hereto as Exhibits ,A., B and C, respectively. The attached Exhibits contain more detailed descriptions of the offered properties. Hard hock Rule 4.9.1 (1) states that a maximum of eighty five percent (85 %) of pledged property may be credited toward the required bond. In addition, the overall value of the deeds of trust should be discounted an additional ten percent for expected real estate commissions, legal fees and engineering costs. Subtracted from that subtotal is approximately one year's worth of operating, maintenance and replacement costs valued at $21,500.00. The total value to be credited toward the Operator's reclamation bond obligation is therefore $8,596,169.00. 4. As part of the Division's conditions for considering whether to accept the Deeds of Trust, the Division sought the opinion of independent analysts to assess the value of the properties and to confirm title thereto. The Operator agreed to pay for the cost of the independent valuations. With the concurrence of the Division, the Operator hired an independent engineer, Tom Williamson of Helton and Williamson Water Consulting Engineers, and an independent attorney, Linda Satterfield, Esq., to respond to specific questions concerning the value and ownership of the offered properties. 5. Mr- I Williamson reviewed an appraisal of the properties prepared by Wheeler and Associates for the Operator and reached the independent conclusion that the appraised values of the