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Letter to Bryce Romig 6 February 22 2001 <br /> reduction revision would be required to reduce the amount of buffer acreage, and that the 550 acres <br /> would have to be illustrated on a new affected lands map. Upon reconsideration, DMG has determined <br /> that the regulations allow the flexibility to maintain the 1,267 buffer acres within the area of affected <br /> land, but bond for only 550 acres. CMC may disturb land anywhere within the 1,267 acre buffer zone, <br /> but may not exceed 550 acres total disturbance within the zone. 495 acres within the buffer zone are <br /> currently disturbed, leaving 55 acres that may be disturbed under the current bond and under the year <br /> 2001 reclamation cost re-estimate. Disturbance within the buffer zone is subject to the terms and <br /> conditions of the amendment AM-03 approval. <br /> DMG's year 2001 re-estimate of reclamation costs assumes that no more than 1,133,900 cubic feet of <br /> stored materials will be present in the Bulk Yard, AKA North 40 Yard, in the event of a bond forfeiture. <br /> This material volume is in accordance with the CMC 1999 cost estimate. If material storage in the Bulk <br /> Yard exceeds the quantity assumed for the cost calculations, CMC must notify DMG within a <br /> reasonable period of time (no more than 60 days under Rule 4.2.1(2)) so the bond can be adjusted. <br /> Essential personnel at Climax Mine should be notified and informed that the amount of material stored <br /> in bone yards at the mine is subject to bonding and regulation under the approved mining and <br /> reclamation plans. Such notification will minimize the potential for large volume material storage <br /> increases in the bone yards that would compromise the bond held by the Mined Land Reclamation <br /> Board. <br /> Enclosed with this letter is the complete year 2001 re-estimate of reclamation costs for the Climax <br /> Mine. The only pending reclamation task that has not been included in this estimate is the removal of <br /> Robinson Lake sediments as discussed above. The updated bond amount based on this estimate is <br /> $63,037,575.00. Please provide a new Financial Warranty or a rider to the current Financial Warranty <br /> reflecting the updated bond amount. If you wish to submit a different type of Financial Warranty, <br /> please contact our office for the applicable form. In accordance with Rule 4.2.1(2) of the Hard <br /> Rock/Metal Mining Rules and Regulations of the Mined Land Reclamation Board a bond in the updated <br /> amount must be in place within sixty days of the signature date of this document. Alternatively, the 60 <br /> day period provided under the regulations may be used to adjust the amount of bond required as <br /> appropriate based on discussions with CMC following review of DMG's year 2000 re-estimate. <br /> If you have any questions, please contact me. <br /> Sincerely, <br /> Allen C. Sorenson <br /> Reclamation Specialist <br /> enclosure(s) <br /> cc: Barb Chiappone, DMG (w/o enclosures) cAwindows\personak imax sr-3 appA.doc <br />