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RECEIVED <br />REVIEW QUESTION ~ ;IUL 1 01981 <br />• 2.05,4 NED ~pNp <br />(2)(b) Revegetation costs; i.e., mulching, seem toc~ ~y~~~~"~T1OPilo°d~'e <br />substantiate or recalculate this figure. What are the assumptions f~~ ~F~ <br />15 percent figure for calculating administrative costs? The applicant <br />should supply estimates for removal of buildings. <br />RESPONSE <br />The reclamation costs were prepared for H-G Coal Company by a <br />qualified cost engineer. Production rates, equipment, excava- <br />tion quantities, and manpower requirements are summarized for <br />each reclamation task. H-G Coal Company believes that the costs <br />have been substantiated for each item and that no additional <br />calculations are necessary. (See copy of invoice supplied.) <br />Assumptions for the 15 percent administrative costs are based on <br />• the costs for general expenses, and overhead which include costs <br />for contracting, management, engineering, office supplies, and <br />administrative costs. The 15 percent figure is based on world- <br />wide experience. H-G Coal Company has calculated the removal of <br />facilities and associated structures. <br />This cost is presented under 2.05.4(b). It is the first cost <br />determined in the study. Facility removal costs are also given <br />in the summary of reclamation costs at the end of the study. <br />Reclamation cost for the tipple loadout area and railroad spur <br />are shown below: <br />Tipple/loadout Railroad Spur reclamation = $218,620 <br /> <br />