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2016-02-16_GENERAL DOCUMENTS - C1983059
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2016-02-16_GENERAL DOCUMENTS - C1983059
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Last modified
8/24/2016 6:19:18 PM
Creation date
2/16/2016 9:58:24 AM
Metadata
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Template:
DRMS Permit Index
Permit No
C1983059
IBM Index Class Name
General Documents
Doc Date
2/16/2016
Doc Name
Midterm Review Findings & Cost Estimate (MT7)
From
DRMS
To
Terror Creek, LLC
Permit Index Doc Type
Findings
Email Name
JDM
DIH
Media Type
D
Archive
No
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SECTION VI — BONDING SUMMARY <br />A compiled reclamation cost estimate was developed by the Division as a part of this 2016 <br />Midterm Review process. The Division's reclamation costs have been updated as of February <br />16, 2016. A summary of the updated costs, in addition to any revision adjustments, has been <br />completed for this 2016 Midterm Review. As of February 16, 2016, the Division estimates <br />reclamation liability at the Terror Creek Loadout to be $277,762.00. This amount is sufficient to <br />assure completion of the remaining reclamation work at the site if the work had to be performed <br />by the Division, including the cost of re-establishing vegetation on any revegetated areas, should <br />those areas fail. The permittee currently has on deposit with the Division one Corporate Surety <br />totaling $290,000.00. <br />Based on the updated costs of the associated Minor Revision No. 28, the direct costs for all <br />reclamation tasks is $201,007.00. This is more than the direct costs of $198,007.83, calculated <br />for the Terror Creek Loadout Permit Renewal No. 6. Indirect costs consist of the Overhead and <br />Profit costs and the Legal, Engineering, and Project Management costs. Overhead and Profit <br />costs consist of Liability Insurance (% of direct cost), Performance Bond (% of direct cost), Job <br />Superintendent (hourly), and Profit (% of direct cost) which make up the Contract Amount <br />(direct cost + Overhead and Profit). The Legal, Engineering, and Project Management Costs <br />consist of Engineering Work (% of contract amount), and Reclamation Management (% of <br />contract amount) for a Total Indirect Cost of $76,755.00. <br />SECTION IV — MIDTERM ADEQUACY QUESTIONS <br />Pursuant to Rule 2.08.3, the Division finds that the permit application C-1983-059 contains eight <br />deficiencies following the review for the purpose of fulfilling the requirements of the Colorado <br />Surface Coal Mining Reclamation Act, and the Regulations of the Colorado Mined Land <br />Reclamation Board for Coal Mining. The Division requests that the permittee correct the <br />deficiencies by submission of revised permit pages under appropriate revision applications, or by <br />activities on the ground, by March 23, 2016. <br />Rule 2.03 <br />Item 1: Rule 2.03.4, Volume I page 2.03-5, Identification of Interests identifies Right of Entry <br />and Operation Information. Page 2.03-5 identifies James A. Kiger as the applicant's resident <br />agent. In addition, the identification of interests section of the permit was last updated on <br />08/29/2011. Please update Section 2.03.4 to include changes to the applicant's resident <br />agent and any changes to corporate ownership and control information as well as surface <br />ownership information. In addition, please update Map 1, Surface Ownership, if <br />applicable. <br />Item 2: Rule 2.03.9, Volume I page 2.03-11 and Exhibit 3. Per Rule 2.03.9(2) requires that the <br />personal injury and property damage insurance policy shall be maintained in full force during the <br />life of the permit and any renewal thereof. Exhibit 3 identifies an insurance certificate that has <br />Terror Creek Loadout -4- 02/23/2015 <br />
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