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• ° C <br />Mobilization/Demobilization <br />Peabody states that mobilization/demobilization of equipment will <br />be 5$ of the direct cost. The Division calculated the total cost <br />of mobilization/demobilization on the estimating form attached. <br />Please note the Divisions estimate at $29,445.00 compared to <br />Peabody's estimate of $12,242.00. The Division used the ownership <br />cost/hour, weight of the equipment and haul rig cost/hour <br />multiplied by the travel distance and the average travel speed. <br />The Division also took into account the average time to load and <br />unload the equipment onto the haul rig. Please review the attached <br />document and adjust the bond estimate accordingly, or increase the <br />percentage of the direct cost to account for this discrepancy. <br />Net Proiect Hours <br />Peabody included the cost for Reclamation management fee, which the <br />Division calls the Job Superintendent fee. This job superintendent <br />is on site during the reclamation activity. Based on the entire <br />reclamation project for the HG mine, the Division estimates that <br />the project will be completed within 780 net project hours. This <br />includes earthmoving as well as structural demolition. The <br />Division estimated this total based on the total time per task for <br />the entire project. Peabody uses a percentage of 5.2$ for <br />management fees totaling $12,732.00. The total cost for job <br />foreman and vehicle totals $25.46/hr. The Division feels that <br />$19,867.00 is a reasonable estimate for the job superintendent. <br />Please change the bond estimate to reflect this cost. For further <br />clarification regarding net project hours, please see the attached <br />cost report. <br />Miscellaneous Reclamation Tasks <br />There are a few reclamation tasks omitted from Peabody's <br />performance bond estimate. They are as follows: <br />1. The Division's current policy is to bond for removal of <br />50$ 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 />