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Southfield C1981014: MT6 14 February 19, 2013 <br />finished in the Raton Formation and produced approximately 1 gallon per minute <br />according to the baseline information in the PAP. <br />11. Exhibit 8 provides records of drill logs for resource confirmation holes (exploration holes <br />within the permit area) approved in the Southfield Permit. Abandonment reports have <br />been located for Drill holes SF85 -03, SF85 -08, SF85 -14. These drill holes were released <br />under SR -1. Other holes permitted during MR7, MR8, and MR11 were released during <br />the approval of SR1 as well. <br />In permit section 2.05.4, EFCI commits to conducting a field reconnaissance to document <br />the status of exploration and drill holes. In permit sections 2.05.4 EFCI commits to and <br />4.07 and sealing drilled holes in accordance with Rule 4.07. The Division approved <br />liability release for 51 holes that were not drilled along with 4 reclaimed drill holes (SR1). <br />Final disposition of drill holes that are the responsibility of EFCI was noted during the <br />MT5 review in 2007 (MR55 letter from EFCI to the Division, dated October 4, 2007). As <br />the majority of the reclaimed areas within the Southfield permit are approaching the <br />minimum liability timeframe, please conduct a field reconnaissance in accordance with <br />EFCI's permit commitment and provide abandonment reports for all sealed boreholes, <br />Rule 4.07.3(3). <br />Water monitoring boreholes in the approved water monitoring plan should not be sealed <br />prior to Division approval. Attached to this review is a list of drill holes located in the field <br />by the Division. Please provide any updates to this list as appropriate. <br />12. If monitoring wells MW-08 and MW -10 are no longer used for water monitoring, and are <br />no longer functional, they need to be sealed in accordance with Rule 4.07.3, permit <br />sections 2.02, 2.05.4, 4.07, and a drill hole abandonment report provided to the Division. <br />Section VI - Bonding <br />The Division currently holds bond # 16 -66 -96 in the amount of $380,431.00 for reclamation at <br />the Southfield Mine, issued by National Union Fire Insurance Company. <br />Attached is the reclamation cost estimate for the 2013 Southfield Mine Midterm Review MT6. <br />The Division updated the reclamation cost estimate with costs updated in the second half of <br />2012. This updated estimate represents a new liability of $310,778.55. This estimate <br />includes 22 reclamation tasks identified in the permit and included a cost update only, as no <br />revisions were approved that changed the liability value since the previous estimate was last <br />updated with the 2009 Permit Renewal Estimate (RN5). This 2013 Midterm Review revised <br />cost estimate is $69,652.45 less than the current bond held of $380,431.00. <br />The Division's Permit System identifies a required liability of $374,709.00. This required <br />liability amount is based on the amount released in Bond Release No. 02 (SL -2) and <br />subsequent revisions. The required liability amount is also less than the bond held. The <br />