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Colorado Division of Reclamation, Mining and Safety <br />To: Rob Zuber <br />From: Zach Trujillo <br />CC: Jason Musick <br />Date: April 15, 2019 <br />Re: Keenesburg Mine MT-07 RCE <br /> <br />As requested, I have reviewed Keenesburg Mine’s site wide reclamation cost estimate <br />(RCE) and have updated the costs to include changes since the last Permit Renewal (RN- <br />07) and to account for inflation. <br /> <br />The Division currently holds a certificate of deposit in the amount of $1,197,459.85 for <br />reclamation at the Keenesburg Mine, issued by Travelers Casualty and Surety Co. of <br />America. A compiled reclamation cost estimate was developed by the Division as a part of <br />the RN-07 process issued on September 29, 2017. The Division’s reclamation costs have <br />been updated since that date. A summary of those costs in addition to any revision <br />adjustments has been completed for this Midterm Review. As of April 15, 2019, the <br />Division estimates liability for the current disturbances at the Keenesburg Mine is <br />$1,206,911.00. This amount is sufficient to assure completion of the remaining reclamation <br />work at the site if the work had to be performed by the Division, including the cost of re- <br />establishing vegetation on any revegetated areas, should those areas fail. The updated <br />liability for Keenesburg Mine is $9,451.15 more than the costs of $1,197,459.85, currently <br />held by the Division. Per Rule 3.02.1, please have Keenesburg Mine update the performance <br />bond to the amount of $1,206,911.00. <br /> <br />The primary cost changes associated with MT-07 RCE are summarized below: <br /> <br /> One revision (SL-09) was processed that adjusted Keenesburg Mine’s RCE since <br />RN-07. <br />o As discussed, the Division incorrectly calculated and released monies for <br />tasks that were not associated with the Keenesburg Mine RCE in SL-09. <br />This has been adjusted and accounted for in the MT-07 RCE. <br /> No regrade and topsoil RCE tasks associated with “Other Area” parcels 42 and 43 <br />(See task A05 and E03). <br />o Regrade task A05 was incorporated. <br />o Topsoil Dozer Task E03 was removed and incorporated into new topsoil <br />Scraper Task E03.