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2022-12-21_BONDING - C1981018
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2022-12-21_BONDING - C1981018
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Entry Properties
Last modified
12/22/2022 6:43:49 AM
Creation date
12/22/2022 6:38:51 AM
Metadata
Fields
Template:
DRMS Permit Index
Permit No
C1981018
IBM Index Class Name
Bonding
Doc Date
12/21/2022
Doc Name Note
Midterm Review & Cost Estimate
Doc Name
Midterm Review And Reclamation Cost Estimate
From
DRMS
To
Blue Mountain Energy, Inc
Type & Sequence
MT8
Email Name
CCW
THM
Media Type
D
Archive
No
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Status: This stipulation requires a future submittal and remains in effect. <br /> Stipulation No. 51 <br /> IN ORDER TO PROTECT IMPORTANT SEASONAL WILDLIFE HABITAT (BIG GAME, <br /> SEVERE WINTER RANGE), EXPLORATION, DRILLING AND OTHER DEVELOPMENT <br /> ACTIVITY MAY NOT BE ALLOWED FOR UP TO 60 DAYS DURING THE PERIOD <br /> 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. 7. <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. 7 review process on February 12, 2019. The Division's reclamation costs have <br /> been updated since that date. A summary of those costs in addition to any revision adjustments <br /> has been completed for this 2022 Midterm Review. As of December 8, 2022, the Division <br /> estimates reclamation liability at the Deserado Mine is $8,919,442.00. This amount is sufficient <br /> to assure completion of the remaining reclamation work at the site if the work had to be <br /> performed by the Division, including the cost of re-establishing vegetation on any revegetated <br /> areas, should those areas fail. The permittee currently has on deposit with the Division one <br /> Corporate Surety totaling $6,600,000.00. Submittal of additional bond monies to the Division to <br /> total the amount of$8,919,442.00 is required. <br /> Based on the updated costs of associated revisions, the direct costs for all reclamation tasks are <br /> $7,181,834.00. This is more than the direct costs of$4,662,252.00, calculated for Permit <br /> Renewal No. 7. Indirect costs consist of the Overhead and Profit costs and the Legal, <br /> Engineering, and Project Management costs. Overhead and Profit costs consist of Liability <br /> Insurance (% of direct cost), Performance Bond (% of direct cost), Job Superintendent(hourly), <br /> and Profit(% of direct cost)which make up the Contract Amount(direct cost+ Overhead and <br /> Profit). The Legal, Engineering, and Project Management Costs consist of Engineering Work(% <br /> of contract amount), and Reclamation Management(% of Contract amount)for a Total Indirect <br /> Cost. Based on the updated costs for all reclamation tasks, the indirect costs for the 2022 <br /> Deserado Mine -5- 12/21/2022 <br />
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