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FROM DECEMBER 1 THROUGH MARCH 31. THIS LIMITATION DOES NOT APPLY TO <br />MAINTENANCE AND OPERATION OF EXISTING FACILITIES. EXCEPTIONS TO THIS <br />LIMITATION IN ANY YEAR MAY BE SPECIFICALLY AUTHORIZED IN WRITING BY <br />THE AREA MANAGER, BUREAU OF LAND MANAGEMENT. <br />Status: This stipulation requires a future submittal and remains in effect. <br />No new stipulations have been imposed since the issuance of Permit Renewal No. 6. <br />SECTION V — PERMIT VARIANCES AND SPECIFIC APPROVALS <br />The Deserado Mine permit does not include a variance under Rules 2.06.2 (experimental <br />practices), 2.06.3 (mountaintop removal), 2.06.5 (variances from approximate original contour <br />(AOC) for steep slope mining) and 2.06.7 (variance from contemporaneous reclamation for <br />combined surface and underground operations). <br />SECTION VI — BONDING SUMMARY <br />A compiled reclamation cost estimate was developed by the Division as a part of the Permit <br />Renewal No. 6 review process on August 13, 2014. The Division's reclamation costs have been <br />updated since that date. A summary of those costs in addition to any revision adjustments has <br />been completed for this 2015 Midterm Review. As of January 26, 2017, the Division estimates <br />reclamation liability at the Deserado Mine is $5,682,782.13. This amount is sufficient to assure <br />completion of the remaining reclamation work at the site if the work had to be performed by the <br />Division, including the cost of re-establishing vegetation on any revegetated areas, should those <br />areas fail. The permittee currently has on deposit with the Division one Corporate Surety <br />totaling $5,808,383.08. <br />Based on the updated costs of associated revisions, the direct costs for all reclamation tasks are <br />$4,487,080. This is more than the direct costs of $4,457,477, calculated for Permit Renewal No. <br />6. Indirect costs consist of the Overhead and Profit costs and the Legal, Engineering, and Project <br />Management costs. Overhead and Profit costs consist of Liability Insurance (% of direct cost), <br />Performance Bond (% of direct cost), Job Superintendent (hourly), and Profit (% of direct cost) <br />which make up the Contract Amount (direct cost + Overhead and Profit). The Legal, <br />Engineering, and Project Management Costs consist of Engineering Work (% of contract <br />amount), and Reclamation Management (% of Contract amount) for a Total Indirect Cost. Based <br />on the updated costs for all reclamation tasks, the indirect costs for the 2017 Midterm Review are <br />$1,195,702.13. This is more than the indirect costs of $1,164,510.38, calculated for Permit <br />Renewal No. 6. <br />SECTION IV — MIDTERM ADEQUACY QUESTIONS <br />Pursuant to 2.08.3, the Division finds that the permit application C-1981-018 contains no <br />deficiencies at this time, following the review for the purpose of fulfilling the requirements of the <br />Colorado Surface Coal Mining Reclamation Act, and the Regulations of the Colorado Mined <br />Land Reclamation Board for Coal Mining. <br />Deserado Mine -5- 1/26/2017 <br />