2015-01-20_REVISION - M1977302

• Permit No: M1977302
• IBM Index Class Name: Revision
• Doc Date: 1/20/2015
• Doc Name: Bond Estimate Review- PLS Response
• From: Pete Lien & Sons, Inc.
• To: DRMS
• Type & Sequence: AM4
• Email Name: MAC
• Media Type: D
• Archive: No

January 12,2015
Division of Reclamation, Mining, and Safety
Attn: Michael Cunningham
1313 Sherman St., Room 215
Denver,CO 80203
Pete Lien & Sons, Inc.; Owl Canyon Quarry; DRMS File No. M-1977-302; Bond Estimate Review—
PLS Response.
DRMS Project Info
Owl Canyon Quarry Amendment Nol.4 (Permit# M1977302)
File Name M302-000 Bond Estimate
Project Date: 12/15/2014
PLS Comments
1. PLS believes the unit cost for Loader operation to be too high. The unit cost was determined
to be $423.91/hour in the different hauling tasks (i.e. Load/Haul 24" Sandstone Overburden,
Load/Haul Crushed Sandstone, etc.). PLS has determined operation cost, including cost of
ownership,to be typically$105/hour. PLS acknowledges that the bond estimate assumes the
cost to a third party contractor to complete each given task. However, even with a markup
of 20%, this would bring this unit cost to around $125/hour.
2. PLS agrees with the unit costs used, with the exception of the loader discussed in Comment
1.
3. Volumes used in the bond estimate were consistent with the Owl Canyon Quarry Reclamation
Plan and past correspondence. PLS has no further comment with regard to volume, timing,
and haul distances.
4. PLS would like to discuss releasing 17 acres currently reclaimed in the Owl Canyon Quarry
area. PLS has monitored this acreage and believes this ready for release and would like to
request the approval from the Colorado Division of Reclamation, Mining, and Safety. The
acreage requested is provided on the 2013-2014 AR as past reclamation.
5. PLS acknowledges the existing bond estimate to be$1,023,700. PLS requests clarification that
this includes the existing disturbed land and not a bond to be applied above the existing bond
held for this operation.
6. PLS would like to discuss reducing the financial obligation through the use of proactive
reclamation and release requests,along with strategic mine planning. PLS plans to reclaim an
additional 15 acres this year. PLS believes that our reclamation track record would warrant a
planned release of 3 years upon completion of final reclamation. As such, when PLS mines in
the added land requested in this amendment, we will be able to follow mining activities
immediately with reclamation activities. This will reduce and limit our disturbed area required
at any given time. PLS would like to discuss the option of limiting our allowed disturbance to
130 acres within the 276 permitted acreage.