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a6 COLORADO <br /> . Division of Reclamation, <br /> Mining and Safety <br /> Department of Natural Resources <br /> Memorandum <br /> DATE: August 5th, 2022 <br /> TO: Erica Crosby, Senior Reclamation Specialist <br /> FROM: Julie Annear, Project Manager <br /> RE: Fair and Reasonable Statement-Indian Shadows Mine Reclamation Project <br /> The Indian Shadows Mine Reclamation Project is located near the town of Hesperus, Colorado in <br /> Southwestern Colorado. The Indian Shadows was an actively permitted mine. The Mined Land <br /> Reclamation Board revoked the permit and the bond was forfeited. The Division of Reclamation, Mining <br /> and Safety(DRMS) has statutory responsibility and authority to reclaim the site using the existing bond <br /> monies. <br /> The project work involves spraying herbicide on approximately 9 acres of land. Also, four hundred cubic <br /> yards (400 cy.) of topsoil will be placed on areas disturbed by gravel mining. Following application of <br /> topsoil, two acres (2 ac.) will be hydro-seeded. <br /> McCollum's Excavating has the equipment and expertise to perform all three tasks. This reduces <br /> mobilization costs as compared to hiring three contractors to complete the individual tasks. The company <br /> is located on the West Slope and, consequently, the mobilization fee is very reasonable compared to <br /> mobilization costs of other companies with mine reclamation expertise in the Denver Metro area. <br /> The items in McCollum's bid for the Indian Shadows Project were compared with similar tasks in the <br /> Table Mountain Project and the Thomas Gravel Pit#4 project. The price that McCollum's Excavating <br /> submitted for the work is fair and reasonable based on the site location and the scope of work as <br /> described below. <br /> Herbicide Application <br /> September 2017- Herbicide application was completed as part of the Table Mountain Project- Berry <br /> Trucking and Excavating was the low bidder. Two herbicides were applied. No surfactant was required. <br /> Herbicide application was completed by Berry Trucking at a cost of$225 per acre. <br /> McCollum's excavating bid $445 per acre for herbicide application. The required herbicide application for <br /> the Indian Shadows project requires two different herbicides as well as a surfactant. Prices for herbicide <br /> application have increased substantially since 2017 due to labor and material costs. Based on this, the <br /> quoted price for the Indian Shadows Project is considered to be fair and reasonable. <br /> Topsoil <br /> Topsoil will be obtained from a local company for$41.00 per cubic yard. This includes the cost of material <br /> plus delivery. McCollum's Excavating bid is $72.50 per cubic yard for handling, spreading and <br /> compacting the topsoil, as well as seedbed preparation. This price is fair and reasonable based on the <br /> cost of equipment to handle the topsoil, fuel and labor. <br />