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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 />John W. Hickenlooper <br />Governor <br />Robert W. Randall <br />Executive Director <br />Virginia Brannon <br />Director <br />INTEROFFICE MEMORANDUM <br />TO: Leigh Simmons <br />FROM: Clayton Wein <br />DATE: December 1, 2016. <br />SUBJECT: West Elk Mine TR -140 Reclamation Cost Estimate <br />As requested I have completed a reclamation cost estimate for the West Elk TR -140. The <br />estimate is composed of a CIRCES document that details the cost associated with the proposed <br />access road segments that are involved with the relocation of the MDW pads. The second <br />component of the cost estimate is a spreadsheet that outlines the details of the 12 MDW pads that <br />are proposed to be eliminated in TR -140. This estimate is for how much the bond should be <br />reduced by. The spreadsheet has the total direct and indirect costs associated with reclaiming the <br />12 MDW pads and their associated access roads. Information from tasks in PR -14, TR -123 and <br />RN -06 correspond to the pads that will be eliminated. The charts on the spreadsheet identify <br />each task in RN -06 that was used to complete the estimate. The results are outlined below: <br />- Cost for the new road segments: $10,236.87 <br />- Estimate for Bond Reduction: $153,804.02 <br />- Net Decrease in Bond: $1439567.15 <br />Adequacy questions for the operator were developed during the calculation of the cost estimate. <br />In TR -140, there are a total of 14 MDW pads proposed to be relocated. Will the relocation of the <br />pads change the depths of the wells to be drilled? If so, will the changes be significant enough <br />for the need to revise the cost estimate associated with sealing the boreholes? <br />OW co�. <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http://mining.state.co.us <br />John W. Hickenlooper, Governor I Robert W. Randall, Executive Director I Virginia Brannon, DirectortM <br />.; <br />*- <br />