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Memo to Gregg Squire 2 February 5, 2003 <br />Activity Quantity Units Unit Cost <br /> Costs <br />F Slurry Wali @ 100% Installation Cost <br />assuming a total of 19,932 l.f. of wall, <br />avg depth of 26.5'+3' into bedrock <br />1 Excavation, Materials & Labor & dewatering 587,994 Face Ft $3.00 $1,763,982 <br />Subtotal of other direct reclamation costs: $ 235,457 <br />Total Disturbance Costs $1,999,439 <br />Contractor Mobilization (8% of direct costs} $ 159,995 <br />Overhead 018.5% of direct costs) $ 369,896 <br />Administration (5% of contract amount) $ 126,467 <br />Total $2,655,797 <br />Note: The 5 percent administration cost element required under §34-32.5-117(4)(b)(I) must be applied [o <br />_[he sum of the direct costs Qotal,dis[urbance costs) and the indirect costs (mobilization plus overhead); in <br />[he Applicant's Table for Reclamation Cos[ Es[i'mate ]trovided with [he 2-3-03 submittal, [he 5 percent <br />- ~ ~ ~ ~ -administration costhad only been applied [o [he direct cos[. <br />Once the slarry wall is completed, the DMG can consider reducing the line item for direct cost of <br />slurry wall installation to 20 percent of the estimated installation cost; this would also result in <br />commensurate reduction of the indirect and administration costs included in the bond amount. The <br />-rationale for the 20 percent bonding option available to Operators installing slurry walls for a post <br />mining land use of developed water restittrees, is as-folrows:- <br />• An' Operator provides design plans, specifications, and a quality assurance plan for DMG <br />review and acceptance. <br />• The DMG makes a determination that a slurry wall constructed in accordance with the plans <br />and specifications, and under the approved quality assurance program, has a high probability <br />' of effectively meeting leakage criteria for sealed reservoirs established by the State <br />Engineer. <br />Once the slurry wall is installed and the final construction report, including test results, is <br />review and accepted by DMG, an Operator becomes eligible for a bond equal to 20 percent <br />of the estimated cost to install the slurry wall. The 20 percent bond is a contingency against <br />excessive leakage that may be detected during final testing of the sealed reservoir that would <br />require repair or replacement of potions of the slurry wall, or other actions to seal the <br />leaking areas. Once the reservoir has been found satisfactory by the State Engineer, the <br />Operator may request release of the remaining 20 percent bond. <br />The opportunity is available for Operator's at new gravel pits to provide the 20 percent bond <br />at the time of permit issuance, and never be burdened by the cost of posting a 100 percent <br />slurry wall installation cost bond. Such Operator's must commit to DMG that mining will <br />not intersect ground water until the DMG has reviewed and accepted the final slurry wall <br />