_PERMIT FILE - M2016010 ‎(2)‎

• Permit No: M2016010
• IBM Index Class Name: Permit File
• Doc Name: Adequacy Review Response #3
• From: Transit Mix Concrete Co.
• To: DRMS
• Email Name: AME
• Media Type: D
• Archive: No

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Transit Mix Concrete Co.
This reclamation bond estimate for disturbance at the Hitch Rack Ranch Quarry provide for the
third-party costs required to reclaim the disturbances as required by the Colorado Division of
Reclamation Mining and Safety (CDRMS). Costs have been provided for demolition, earthwork
and revegetation. Costs are based on a conservative scenario which the mine is developed to
full extent of the Phase III, which is approximately 10 years in the future. It is assumed that
salvageable items of value such as generators, air compressors, and mobile equipment have
been removed from the site.
The estimate is based on estimations (i.e. unit costs, equipment productions, etc.) presented in:
1. RSMeans CostWorks 2016, 20th Annual Edition, CostMine/InfoMine USA
2. Caterpillar Performance Handbook, Edition 43
3. Norwest's past experiences and
4. Reclamation plan requirements detailed in the CDRMS Application.
RS Means: RSMeans Unit prices include the contractor's overhead and profit; therefore, these
items are not included as separate line items in the estimate. Unit prices have been adjusted by
specific location (i.e. near Colorado Springs, Colorado). Fountain Landfill approximately 25 miles
from the site was selected to calculate off-site disposal costs. Typically, all Colorado cities
referenced in RSMeans are either slightly above or below Country averages.
Mine and Mill: Mine and Mill equipment unit rates were determined based on capital recovery,
overhead, parts and labor (overhaul and maintenance), diesel fuel, tube, tires (if applicable), lube
parts, etc. "Off-road" diesel fuel is sold for use in vehicles and equipment that are not generally
operated on public roadways, such as those used on farms and railways, in construction, and for
electric power generation. It is not subject to state and federal excise taxes that are applied to the
retail sales of diesel fuel sold for vehicles generally operating on public roadways. This fuel is
dyed red (as is heating oil) to distinguish it from on-highway diesel fuel. "Off-road" diesel fuel
prices were estimated using the weekly retail on-highway diesel fuel prices (published by US
Energy Information Administration) and subtract federal and state of Colorado Motor Fuels Taxes.
CAT Performance Handbook: Equipment selections are based on suitability and efficiency for
each task. Each piece of equipment has standard productivity specifications under varying
conditions, such as grade, operator skill, rolling resistance.
The Bond Total includes the following Direct Costs:
1. Demolition and Removal
2. Backfilling and Grading
3. Revegetation
Hitch Rack Ranch Quarry Permit Application M-2016-010
September 26, 2016 L-2