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(3) Notes Payable
6 Months Ended
Jun. 30, 2011
Debt Disclosure [Text Block]
(3)           Notes Payable

In December 2008, we entered into a loan agreement with a bank consortium that provides for a $40 million term loan and a $30 million revolving credit facility.  At June 30, 2011, we owed $22.5 million on the term loan.  We pay a 1/2% annual commitment fee on the $30 million line of credit.   Substantially all of Sunrise's assets are pledged under this loan agreement and we are the guarantor.  The loan agreement requires customary covenants, including financial ratios and restrictions on distributions.  The current interest rate is LIBOR- one month (0.19%) plus 2.50% or 2.69%.

In the past we used bank letter of credits for our reclamation bonds.  In June 2011, we replaced the letters of credit with surety bonds.

In 2006 we entered into two agreements swapping variable rates for fixed rates. Considering the two swap agreements, commitment fees and amortization of the closing costs, our current interest rate is about 7.6%.  One of the swaps expires in December 2011 and the other in July 2012. Accounting rules require us to recognize all derivatives on the balance sheet at estimated fair value. Derivatives that are not hedges must be adjusted to estimated fair value through earnings. We have no derivatives designated as a hedge. The recorded value of our bank debt approximates fair value as it bears interest at a floating rate.