The State of Montana requires any company that wants to mine to pay for a bond that covers the complete cost of reclamation before they can begin construction of the mine. The Montana Department of Environmental Quality (DEQ) establishes the bond amount. Over many years of mining in Montana, the DEQ has gained a clear understanding of the costs required to close a mine. They calculate the bond amount based on 3rd party reclamation costs for worst-case reclamation scenario for each part of the project for fully reclaiming the property. The Company is required to post the full amount before it can begin mine construction. Initial bonding for Black Butte Copper covers Phase 1 of development which includes construction of some initial surface facilities and some roads. This bond is currently set at $4.6 million. The company must post a second much larger bond amount to cover a second phase of development which includes the majority of surface facilities and the underground mining needed to access the copper deposit which the DEQ has not calculated yet. Once set, the bonding level is reviewed every year and is completely recalculated every 5 years.