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J. E. STOVER & ASSOCIATES 1111f~~IlIII~~rrlll 2768 COMPASS DRIVE, SUITE 101 999 11 GRAND JUNCTION, COLORADO 81506 PNONE: (303) 245-4101, FAX 242-7908 MINE ENGINEERING CIVIL ENGINEERING MINE RECLAMATION CONSTRUCTION MANAGEMENT August 30, 1993 RECE11/EG S. S. Shuey Division of Minerals and Geology 1313 Sherman St., Room 215 Denver, CO 80203 SEP 1 1993 D!~~ision of niinerais n u~uiogy Re: Bear Coal Company, Inc. Bond Estimate, TR-011 Permit C-81-033 Dear Mr. Shuey: The Division's letter dated August 24, 1993, outlined the negotiated agreement between Bear and the Division regarding the required reclamation bond. During the negotiations, the Division agreed to use the average of two bids to establish the bond estimate for the concrete demolition work. As a condition of this agreement, Bear is to submit a letter from each construction company, specifying that the contractors will honor their concrete demolition prices for a period of at least 2.5 years. According to my records, the mid-term review will be conducted during the six months prior to January 19, 1995. Prior to the mid- term review deadline, the concrete demolition prices are to be reevaluated. Therefore the concrete demolition prices need only be honored up through January 19, 1995 which is less than 1.5 years. The low bidder for the concrete demolition work, SEM Construction Company, did agree, without qualification, to honor its concrete demolition prices for up to 2.5 years. Enclosed is a letter from SEM which states it will honor the prices. Beavers Construction Company agreed to honor its prices for 2.5 years providing machinery and overhead costs stay at 1993 levels. This provision is explained in a note at the bottom of Beavers' bid sheet. Although this provision is less than the Division requested, I believe the Division could accept the concrete demolition price determined for the bond estimate for the following reasons: • The low bidder agreed to honor its demolition price for 2.5 years.