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Indirect Costs <br />The Division reviewed the indirect cost prepared by Peabody and has <br />the following comments: <br />1. Mobilization/Demobilization- See above <br />2. Contingencies (10$ of Direct Cost)- The Division of <br />Minerals and Geology does not include contingency fees in the <br />estimate. Peabody can omit the 10$ contingency fee from the bond <br />estimate. <br />3. Engineering Redesign Fee (7$ of Direct Cost)- The <br />Division calls this the Contractor Preparation Fee using a rate of <br />4.25$ of the direct cost and the total of the indirect cost. <br />Peabody can lower the 7$ fee to 4.25$ of the indirect and direct <br />total of the bond estimate. <br />4. Contractors Profit and Overhead (10.5$ of Direct Cost)- <br />The Division uses the value of l0$ of the direct reclamation cost <br />total to determine contractors profit and overhead. Peabody can <br />use 10$ rather than 10.5$ in the bond estimate. <br />5. Reclamation Management fee (5.2$ of Direct Cost)- See Net <br />Project Hours. <br />6. Public Liability Insurance (1.550$ of Direct Cost)- The <br />Division calculates the public liability insurance at a rate of <br />1.550$ of the direct cost. Please include this liability insurance <br />in the bond estimate. <br />7. Contractor's Performance Bond (.975$ of Direct Cost)- The <br />Division calculates the contractors performance bond in the <br />reclamation cost estimate. This percentage is .975$ of the direct <br />cost of the bond estimate. Please include this cost in the bond <br />estimate. <br />This concludes the Division's review of Peabody's performance bond <br />estimate for the HG Loadout Facility Mine. <br />Section 2.05.4(2)(c) Backfillinq and Rouqh Gradinq <br />Section 2.05.4(2)(c) states that Peabody is required to produce a <br />plan for backfilling and grading the proposed permit area. The <br />Division needs appropriate cross sections that are typical and <br />represent the final surface of the proposed permit area. <br />Please submit to the Division an appropriate cross section of the <br />existing and final surface configuration of the proposed permit <br />area in accordance with Section 2.05.4(2)(c). <br />