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EXHIBIT L <br />Reclamation Cost <br />A phased and cumulative bonding approach is proposed for the NCCI Pit #1 operation. The <br />financial warranty required for each phase is the warranty required to completely reclaim that <br />phase. <br />The financial warranty required for each phase of mining includes a cost component for the clay <br />liner required to close the current mined area should the project be stopped. Because the clay <br />liner required to close the current mined area for each phase of mining is replaced with a new <br />clay liner required to close the current mined area component as the next phase of mining <br />occurs, the financial warranty required for this component for the previous phase is credited <br />back in each phase's required financial warranty calculation. This accurately calculates the <br />additional financial warranty required for any given phase of mining and for the current limit of <br />disturbance as well as account for the financial warranty that has already been posted to ensure <br />that the Division has sufficient cumulative financial warranty to complete the reclamation. <br />Direct costs related to the construction of the reclamation components that have been included <br />in the financial warranty calculations include: Scarifying disturbed ground surfaces, re- applying <br />topsoil over disturbed areas, revegetating disturbed areas, dewatering the full pit for each <br />phase, clay liner construction, and contractor mobilization. The clay liner costs were reduced to <br />20% of the cost to construct the liner under the regulated construction option detailed in the <br />"Guide to Specification preparation for Slurry Walls and Clay Liners as a Component of a <br />Colorado Mined Land Reclamation Permit ". NCC is eligible for this option because of the <br />inclusion of design documents, plans and specifications, and a quality assurance program for <br />the construction of the slurry wall in Technical Revision No. 8. <br />Overhead, profit, and project management costs were then calculated and added to the direct <br />construction costs to arrive at the required financial warranty for each phase. <br />As each new phase is started, the financial warranty for that phase will be posted with the <br />Division. When a phase has been reclaimed, inspected, and accepted by the Division, the <br />associated financial warranty for that phase can then be released. <br />Please see the attached calculations for details of the costs and quantities used to determine <br />the financial warranty required for each phase of mining. <br />The following table summarizes the financial warranty required for each phase, and the <br />cumulative financial warranty that will be provided during any given phase. <br />Northern Colorado Constructors, Inc. <br />�' J&T Consulting, Inc. NCCI Pit #1 <br />M- 2001 -107 — Technical Revision No. 8 <br />