Werner Corporation Financial Assurance Cost Estimates

A Financial Assurance Cost Estimate (FACE) guarantees by way of a surety bond, irrevocable letter of credit, trust fund, or other acceptable mechanism, that sufficient funds are available to lead agencies to reclaim mined lands if the operator defaults or abandons the mine. Although mine operators have always been required to update their FACEs annually, it has not been enforced until recently. FACEs for four mines operated by Werner Corporation were revised to reflect current site conditions and prevailing wages and costs.

Justice & Associates created a library of different costs that are associated with mine reclamation, such as the cost of grading and revegetation, dismantling existing plant structures, removal of equipment, and monitoring and maintenance. Each mine was then assessed in terms of acreage, grading requirements, existing equipment and its value, seed mixes, equipment necessary to perform the reclamation activities as well as hourly wages for personnel to operate the equipment. Justice & Associates is currently developing its own software to streamline the calculations. Various dropdown menus and check boxes will allow each consultant to easily evaluate certain aspects of the reclamation costs. Combined with significant experience in the business, Justice & Associates is able to efficiently create accurate FACEs that meet the lead agency’s requirements.

Werner Corporation 25555 Maitri Road Corona, CA 92883-5152 Contact: Larry Werner Phone: (951) 277-3900

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