2011-07-08_REVISION - M2004013 (13)

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Exhibit L - Reclamation Costs Paul Banks and Associates, LLC Reclamation costs for this mining permit were based on the maximum disturbed acreage (80 acres) at any given time; including plant and stockpile areas.The DRMS approved the current reclamation bond of $410,693 on June 4, 2004. As discussed in Exhibit E- Reclamation Plan, a slurry wall of approximately 13,094 feet in length is required for Mine Area 1. A planning number for the cost of slurry wall construction is $3.00 per square foot. Thus, 13,094 feet long x 35 feet deep equals 458,290 square feet. Constructing this slurry wall would therefore cost approximately $1,375,000. Mine Area 2 impounds approximately 353 acre -feet of water. This requires a slurry wall approximately 6,565 feet long. Thus, 6,565 feet x 35 feet deep equals 229,775 square feet. Constructing the slurry wall would therefore cost approximately $689,000. The Pierre Shale directly underlies the sand and gravel deposit on the property. This geologic unit is well known for its relative impermeability and is very suitable bedrock for impounding water. It is recognized that the DRMS has a policy whereby a financial warranty for a slurry wall can be submitted at 20% of the value of the slurry wall provided that detailed engineering design plans are submitted. The applicant currently does not have such plans and won't until an end -user of the reservoir is known. At that time, the plans will be developed. It is proposed that the financial warranty be increased by $412,800 (which is 20% of the cost of constructing the slurry wall) and that a Technical Revision be submitted when an end user is known and they have designed the slurry wall. The applicant commits to a slurry wall design that meets or exceeds the specifications of the DRMS and the State Engineer's Office. St. Barbara Sand and Gravel Mine 10031 Pete Lien & Sons, Inc. 27 June 15, 2011