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DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />Date: July 5, 2011 <br />To: Joe Dudash <br />From: Susan Burgmaier <br />RE: Bear No. 3 Mine, Permit No. C- 1981 -033, Bear Coal Company <br />SL -4, Partial Phase One Bond Release <br />Reclamation Cost Recalculation <br />Office of <br />Mined Land Reclamation <br />STATE OF COLORADO <br />John W. Hickenlooper <br />Govemor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />Per your request, I have recalculated the reclamation cost estimate for the Bear No. 3 Mine using the new <br />CIRCES program and current unit costs. I have estimated the current reclamation costs and subsequent <br />liability to be $146,617.66. This is an increase of $16,226.66 over my previous estimate completed for the <br />Phase I Bond Release (SL -4) decision that was finalized in April of this year. The basis of the estimate (volumes, <br />haul distances, etc.) is unchanged from the previous estimate; the increase is entirely due to increases in unit <br />costs. <br />A copy of my reclamation cost estimate is attached. Should you or the operator have any questions or need <br />additional information, please let me know. <br />Enclosures <br />cc: Sandy Brown (w /out attachments) <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />—&— <br />SAFETY <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />