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New Elk Coal Company 1/25/2012 <br />Reclamation Bond Estimate <br />Drill Three Exploration Holes <br />MR -107 <br />SeaUnr Expense <br />Drill Pad Reclamation <br />Hole Variables <br />Pad Variables <br />Number of Holes to be Sealed <br />3 <br />Holes <br />_ <br />Length <br />100 !Feet <br />Miles of Road to be Reclaimed <br />- <br />Miles <br />Width <br />I00;Feet <br />Rotary Hole Diameter <br />6.000 <br />Inches <br />Acres/Pad <br />0.23 ;Acres <br />Rotary Footage -_- <br />2,50_0 <br />Feet ! <br />Total Acres <br />0.69 !Acres <br />Cubic Foot of Hole per Sack of Cement <br />2 <br />CF <br />- <br />Regrading <br />Sealtn Materials - Variables <br />Cement per Sack _ <br />-- <br />Plugs <br />Hole Markers <br />$ 10.65 <br />- -- <br />$ 176.88 <br />$ 3.72 <br />-- <br />I Equipment Hours per Pad includes Mud Pit <br />Equipment Cost per Hour <br />ui ment Cost per Pad <br />44Hours <br />$ 90.00 <br />I $ 360.00 <br />— <br />Total Regrading Cost <br />$ 11080.00 <br />Sealing Materials - Volumes <br />i <br />Reseedin <br />Cement in Sacks <br />245 <br />Each <br />Seeding & Mulching Cost Per Acre <br />$ 252.00 ! <br />Plus <br />— N/A <br />Each <br />Acres to Reseed <br />0.69 <br />Hole Markers <br />3 <br />_ <br />Each <br />— <br />Total Reseeding Cost <br />$ 173.55 ! <br />Rig Time to Pull Casing2 <br />Total Drill Pad Reclamation <br />$ 1,253.55 <br />-- <br />Rig Time to Seal Hole <br />Rig ime per hour Cost <br />g <br />6 <br />$ 152.20 <br />Hours <br />� <br />_ <br />Only 0.5 acres of new disturbed area <br />—F -- <br />- - - - -- <br />- -- <br />-- <br />Total Cost, Sealing Rig Cost <br />- - -------- - --- - --- - <br />Water Cost <br />$ 3,653 <br />- <br />- <br />- -- - -------- - - <br />Hours per Hole _ <br />_ 8 <br />Hours <br />Cost per Hour for Water Truck and Driver <br />$ 56.40 <br />— <br />Total Water Cost <br />$ 1,353.60 <br />Sealing Materials - Expense <br />Cement in Sacks <br />$ 2,613.91 <br />Plugs <br />Hole Markers <br />N/A <br />$ 11.16 <br />Total Out Sealin &Materials - <br />$ - 2,625.07 <br />Total Sealing Expense <br />$ 7,631 <br />i <br />-- - - - - <br />Direct Reclamation Cost <br />Job Su rintendent(75 hrs $58.56) — <br />I <br />----------------- <br />$ 8,885 <br />$ 4,39_2 <br />_ t <br />-- <br />— — <br />- -- - -- -- -- -- <br />Profit Insurance, Bond 13.07% <br />Subtotal contract amount <br />$ 1,161 <br />$ 14,438 <br />-- <br />r----- - -� - -- <br />Engineering 4.25% <br />$ 614 <br />Reclamation Management Management 5% <br />$ 722 <br />Total Reclamation Cost <br />$ 15,774 <br />_ <br />MR -107 Exhibit 28 - Page 232 Revised 01/25/12 <br />