2017-02-17_REVISION - C1980007 - Laserfiche WebLink

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Memo To: Leigh Simmons From: Janet Binns cc: Jim Stark Date: 2/17/2017 Re: West Elk, RN7 Reclamation Cost Estimate I have updated the reclamation cost estimate in CIRCES for West Elk, Permit Renewal No. 7. I started by updating the last complete estimate, RN6 dated 10/2011 that had been entered into CIRCES. I was unable to locate a reclamation cost estimate (RCE) updated with Midterm 7, dated 1/27/2014. Once the RN6 estimate was updated with the current (2016) CIRCES costs, I then added tasks associated with all permit revisions, technical revisions, and minor revisions that changed the liability since the last full RCE (10/2011). Once all tasks were included, I then removed all tasks associated with bond releases since RN6 RCE. These bond releases included SL4, SLS, SL6, SL7, SLB, and SL9. I tried breaking up this behemoth of an estimate into mining areas. Much of this was already done with the RN6 estimate. Subtotals were done for each sub area. The Division anticipates that this will aid in addressing the "applicable amount" when the operator applies for bond release. Drill holes: I used the spreadsheets that Tom Kaldenbach had previously made for RN6. Due to the sheer number of holes, I lumped diameters together. Tom's spreadsheet is included with this estimate so the operator can see how the Division got volumes and depths for some of the drill hole sealing tasks. The Division anticipates that cost updates (2017) to the Division's CIRCES program will occur at the end of February 2017. As the operator reviews the estimate, questions and clarifications should be focused on task applicability, volumes, distances and equipment choice. On the overall summary form: Task 7RN, the fleet size was roughly estimated as a place holder. The actual fleet sizes are on the subtotal cost summary forms. Thank you for your patience. Once the operator reviews the estimate, I am willing to discuss questions with them.