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Please note the Divisions estimate at $29,445.00 compared to <br />Peabody's estimate of $12,242.00. The Division used the ownership <br />cost/hour, weight of the equipment and haul rig cost/hour <br />multiplied by the travel distance and the average travel speed. <br />The Division also took into account the average time to load and <br />unload the equipment onto the haul rig. Please review the attached <br />document and adjust the bond estimate accordingly, or increase the <br />percentage of the direct cost to account for this discrepancy. <br />Net Proiect Hours <br />Peabody included the cost for Reclamation management fee, which the <br />Division calls the Job Superintendent fee. This job superintendent <br />is on site during the reclamation activity. Based on the entire <br />reclamation project for the HG mine, the Division estimates that <br />the project will be completed within 780 net project hours. This <br />includes earthmoving as well as structural demolition. Peabody <br />uses a percentage of 5.28 for management fees totaling $12,732.00. <br />The total cost for job foreman and vehicle totals $25.46/hr. The <br />Division feels that $19,867.00 is a reasonable estimate for the job <br />superintendent. Please change the bond estimate to reflect this <br />cost. <br />Miscellaneous Reclamation Tasks <br />There are a few reclamation tasks omitted from Peabody's <br />performance bond estimate. They are as follows: <br />1. The Division's current policy is to bond for removal of <br />508 of the total coal stockpile. Peabody is in the process of <br />permitting 50,000 tons of coal to be stockpiled on the HG Loadout <br />mine. Please include a cost for removing the coal from the site to <br />be disposed in the appropriate manner, or calculate the cost for <br />disposal on site. Peabody is required to submit a reclamation plan <br />for roughly half of the coal stockpile being 25,000 tons. Please <br />include this in the estimate. <br />2. Please state whether any monitoring wells or exploration <br />holes within the permit area need to be sealed or plugged. If so, <br />please include a cost for sealing and plugging such wells. <br />3. Please include a cost for maintaining the site over the <br />10-year liability period. Such costs should include rill and gully <br />repair and other maintenance items. <br />4. In the permit application, Peabody stated that 5280 feet <br />of fencing would be placed around the reclaimed area. Using MEANS <br />1993 edition, the Division feels that an appropriate cost for a <br />five foot fence is $7.90/lin.ft. Please include this cost in the <br />estimate. <br />