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New Elk Coal Company <br />Permit C- 1981 -012 <br />Three Exploration Holes <br />MR -107 is processed to obtain approval to drill three exploration holes south and <br />southeast of the mine facilities as shown on Map 20 Sheet 1. Two of the holes (NE -17 -12 &NE- <br />18-12) are located on DOW land. Exploration hole NE -01 -12 is located on the Applicants <br />property. <br />This document estimates the bonding required to seal reclaim the drill holes: <br />Direct Reclamation Cost <br />$ <br />8,885 <br />Job Superintendent 75 hrs $58.56 <br />$ <br />4,392 <br />Profit, Insurance, Bond @ 13.07% <br />$ <br />1,161 <br />Subtotal contract amount <br />$ <br />14,438 <br />Engineering 4.25% <br />$ <br />614 <br />Reclamation Management 5% <br />$ <br />722 <br />Total Reclamation Cost <br />$ <br />15,774 <br />MR -107 Exhibit 28- Page 231 Revised 01/25/12 <br />