_GENERAL DOCUMENTS - C1981017 (230)

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Fundamentally, the table indicates that even these low rates of inflation, if stretched out over a long period of time, can significantly increase the cost of projects (or reduce the buying power of fixed monies). The table shows that escalating the $3 million bond over the last eight years has increased the real cost of this project by approximately $505,000, which is 17 percent of the initial $3 million bond. Those values are significant, and are increasing with each passing day. Mr. Renner expects that the project will require at least two more years to complete. The table further projects that, if the project continues for two more years, the $3 million bond should have been $3.53 million based on this disparity only. Road Reclamation and Revegetation The width of the haul roads averaged approximately 45 feet. The MCR reclamation plan indicated that the roads should be reduced to 20 feet, and that the culverts and ditch should be left in place. The final reclamation implemented by DMG removed the ditch, regraded the surface of the road to drain out to the fill (rather than in to the cut), removed culverts, installed dips (water bars), ripped, and revegetated. Roads E, F, and G were reclaimed as discussed above. The task involved the removal of 54 culverts (with the concomitant re-establishment of the drainage through and off the road in each case), installation of 150 dips, backfilling one segment near Mine 3, and ripping and revegetation of about 51 acres for a total cost of $89,000. In my experience, $1 ,750 per acre for all of that work is exceedingly cheap. Revegetation alone many times costs more than $1 ,750 per acre. I hired a revegetation contractor to revegetate 9.5 acres of similar terrain at timberline for a project in Colorado in 1995. There was no ripping, dirt moving, or culvert removal involved in my project -- only revegetation -- and the total cost was $30,000 ($3,150 per acre). 7