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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1373 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />July 30, 2004 <br />COLORADO <br />DIVISION 'OF <br />MIN &RALS <br />GEOLOGY <br />0.ECLANATION•NINING <br />EAFETY•ECIENCE <br />Bill Owens <br />Governor <br />Russell George <br />Executive Director <br />Mr. Stan Whinnery ~ <br />Ronald W. Cattany <br />Whinnery Construction Co. LLC Division Director <br />P.O. Box 866 Natural Resource Trustee <br />Lake City, CO 81235 <br />RE: Bond Estimate; Whinnery Construction Co. LLC, Porco Pit, Permit Application No. M-2004-042 <br />Dear Mr. Whinnery, <br />I have just completed a bond estimate for the above captioned property. A copy of this estimate is <br />attached for your review. If you disagree with any of the values or assumptions, the Division will revise <br />the estimate provided there are errors or inappropriate assumptions. Otherwise, the Division anticipates <br />that you will provide the necessary financial warranty through some acceptable bonding instrument. <br />The bond estimate attached relies on the following general estimates and assumptions: <br />1. The re-grade area is 300' x 300', comprising 2 acres. Average push distance is 150'. <br />2. The azea to be seeded is 350' x 350', comprising 2.8 acres. Drill seeding is assumed. <br />3. Failure rate for the seed is assumed at 15%. Replanting calls for replacing the seed alone, and <br />does not presume any equipment or labor costs for the re-planting. <br />The seed mix shown in the bond calculation was provided by in-house vegetation specialists and is <br />considered appropriate for the climate of this part of Conejos County and the post-mine land use. The <br />seeds comprise a dryland pasture mix. <br />The bond calculation covers the following (see tables for complete breakdown): <br />Grade 10,000 cubic yards of overburden and topsoil $ 3,338 <br />Drill seed the following <br />Sand dropseed 0.25 Lbs PLS/Ac <br />Pubescent wheatgrass 4.20 " <br />Western wheatgrass 4.80 " <br />Indian Ricegrass 2.00 " <br />Blue Grama 0.60 " <br />TOTAL <br />774 <br />$ 4,112 <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Survey <br />