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COLORADO <br />Division of Reclamation, <br />Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />February 19, 2015 <br />Clint Beck <br />Pete Lien & Sons, Inc. <br />P.O. Box 440 <br />Rapid City, SD 55701 <br />RE: Owl Canyon Quarry; DRMS File No. M -1977 -302; Adequacy Review No. 2 - <br />Amendment No. 4 <br />Dear Mr. Beck, <br />The Division has identified several other comments and questions that must be addressed prior to <br />the Division's decision due date. Please be advised that if you are unable to satisfactorily <br />address any concerns identified in this review before the decision date, it will be your <br />responsibility to request an extension of the review period. If there are outstanding issues <br />that have not been adequately addressed prior to the end of the review period, and no <br />extension has been requested, the Division will deny this application. <br />The Applicant has stated the unit cost for Loader operation is too high. The unit cost of <br />$423.91 /hour is based on the amount it would cost the Division to hire independent <br />contractors to complete reclamation. The Division updates the owner /operating costs on an <br />annual basis. The costs are obtained from several sources including the Cost Reference Guide <br />for Construction Equipment, Contractors Equipment Cost Guide, RS Means Co. <br />Publications, Labor Rate Data (CDOT data), and Caterpillar Performance Handbook. Also, it <br />should be noted that the Indirect Costs which account for approximately 18% of the total <br />bond amount are additional costs that would be incurred if the Division had to complete <br />reclamation. The `General Conditions' section of government contracts requires that the <br />successful bidder obtain adequate public liability insurance and obtain an industry specific <br />performance bond. Therefore, the Division is not able to adjust the unit cost for the Loader <br />operation. However, the Division will recalculate the required financial warranty using <br />different types of equipment or reclamation methods at the Applicant's request. Please <br />respond. <br />2. The Applicant has indicated there are 17 acres which have been reclaimed and are ready for <br />release. Requests for partial surety reductions or acreage releases are separate permitting <br />actions and must be submitted in accordance with Rule 4.17. The Division recommends that <br />.oF : co <br />o <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http: / /mining.state.co.us I * * ** <br />John W. Hickenlooper, Governor I Mike King, Executive Director I Virginia Brannon, Director 1876 <br />