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reclaimed, and requires the Division to perform reclamation in very difficult field conditions, <br /> sometimes at elevations of 10,000 feet or higher. One result of these factors has been that the <br /> Division has had to perform costly, unanticipated work at the site. Based on the Division's <br /> experience, such unanticipated work will occur again. <br /> As with any estimate, the Division's estimate is the Division's best, good faith <br /> determination of how much it will cost to complete reclamation based on current conditions. <br /> However, numerous factors outside of the Division's control affect how much a task or a project <br /> will cost. Consequently, the Division cannot predict with one hundred precent accuracy the <br /> amount of funds it will take to complete reclamation at the site. Until the Division receives bids <br /> for each task and completes each task, actual costs will not be known. <br /> The Division's goal is to reclaim this site to the standards required by regulation and <br /> statute with a keen eye toward using funds cost-effectively. On certain projects the Division was <br /> able to develop ways to perform reclamation at a cost significantly lower than the prior estimate <br /> for the task. This was the case with the Glory Hole Pad Reclamation and the reclamation of <br /> Roads E, F, and G. However, there have been other times when reclamation has been more <br /> costly than anticipated. The Division will continue to watch for ways to efficiently and effectively <br /> reclaim the site. <br /> You should be aware that the Division intends to conduct two projects which it hopes <br /> will be paid for through grant moneys from the Office of Surface Mining Reclamation and <br /> Enforcement ("OSNT). These two projects are the construction of a permanent diversion to <br /> accommodate Dutch Creek in the vicinity of the Dutch Creek flume, and the stabilization of the <br /> stream bank cut slope south of the warehouse, immediately underlying a portion of the western <br /> part of the Old Refuse Pile. The Division estimates that the Dutch Creek project will cost <br /> $115,000. In light of the limited funds from MCR's liquidation plan, the Division applied for and <br /> has received a grant of$115,000 from OSM to cover the estimated cost of this project. <br /> The second project involves minimizing the potential of the Old Refuse Pile of collapsing <br /> into Dutch Creek. The Division applied for a grant to cover the estimated cost of this project in <br /> 1996, but OSM did not approve the grant. The Division has since modified and re-submitted its <br /> grant request, but has not yet received a decision from OSM. The estimated cost of this project is <br /> $125,000 and entails moving a portion of the Refuse Pile toward the central portion of the facility <br /> and excavating the upper extent of the underlying cut bank to a gentler slope. <br /> Lastly, please note that the Division's cost estimate in no way constitutes a waiver of any <br /> objection or dispute the Division may have concerning the Creditors' Trustee's pre- or post- <br /> effective date expenses taken against reclamation funds under the liquidation plan or credit given <br /> for work done pursuant to the M&E contract, or other action the Trustee has taken under the <br /> liquidation plan. <br /> 2 <br />