2013-06-12_PERMIT FILE - C1994082 (5)

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TAB 25 BONDING INTRODUCTION The purpose of this chapter is to provide a reclamation cost estimate, with supporting documentation, for determination of a reclamation performance bond for lands disturbed at Seneca's Yoast Mine. This document will provide information regarding all disturbed lands within the proposed permit boundary. The amount of bond required is developed assuming that the bond would be forfeited at a time when reclamation liabilities are highest within the current five -year permit term. Attachment 25 -1 contains a copy of the current reclamation cost estimate calculated by the Division • 2013 MIDTERM REVIEW - MT4 (Technical Revision 53) The Division revised the reclamation cost estimate to the amount of $2,221,677. • 2012 SL -03 BOND RELEASE The Division revised the reclamation cost estimate to the amount of $2,611,566. • 2010 SL -02 BOND RELEASE The Division revised the reclamation cost estimate to the amount of $4,305,484. • 2008 MIDTERM REVIEW — MT3 The Division revised the reclamation cost estimate to the amount of $5,472,521. • 2006 RECLAMATION COST ESTIMATE (Technical Revision 29) The Division revised the reclamation cost estimate to the amount of $5,046,639. • 2004 "WORST CASE" YEAR DISTURBANCE Following is a description of the methodology used to determine the worst case reclamation costs, which occurred in 2004. For the original bond, this condition most likely occurred at the stage in the mining sequence when the area from which topsoil has been removed is largest and the volume of material to backfill the open pit areas are greatest. This usually occurs when the pit lengths are the longest and the overburden is the thickest. It was determined from Exhibit 12 -1, Operations Plan — Mining and Exhibit 19-1A, Backfilling and Grading (submitted in TR -25) that the highest liability, or worst case, occurred in the Year 2004. This determination was made on pit length, pit location, and disturbance ahead and behind active mining. It has been agreed that the Division would determine /calculate the bond amount based on input and review by SCC. The associated worksheets calculated by the Division are included in Attachment 25 -1, Bond Cost Worksheets. The Division uses the CIRCES Cost Estimating Software to calculate all TR -53 1 Revised 05/13