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iii iiiliuinlii iii <br />999 <br />f 4300 Highway 12 <br />Weston, Colorado 81091 <br />~~` (719)868-2761 <br />Purchasing (719) 868-2768 <br />-~ Fax (719)868-2275 <br />BASIN <br />RESOURCES,mc. December 4, 1994 <br />a subsidiary of ENTECH, Inc. <br />Mr. Joseph Dudash <br />Colorado Division of Minerals and Geology <br />1313 Sherman, Room 215 <br />Denver, CO 80203 <br />A <br />RE: New Elk Mine; Permit C-81-012 <br />TR 36 Bond Caloulation <br />Dear Mr. Dudash: <br />Enclosed is a detailed bonding calculation for the Diesel <br />Spill Remediation System. The proposed bond that the Division <br />calculated made some assumptions that are not correct. The <br />calculations that is enclosed reflects conditions and costa that <br />are more realistic. <br />The differences in the bonding amounts include a change in the <br />dismantling costs of the system, removal of grading and topsoiling <br />cost and reduction of contractor expenses and profit. The <br />dismantling costs included in this calculation are in line with <br />current contractor performance and costs. The original estimate <br />was not calculated as accurately as the current estimate. Your <br />bonding calculation included grading and topsoiling of the well <br />sites. These wells are located in the current disturbed facility <br />area, therefore, these expenses have already been incorporated into <br />the overall Reclamation Bond. The costs for insurance and profit <br />for the contractor is already included in the cost of the <br />equipment. Therefore, this expense was deleted. <br />Please review this bond calculation. I believe the amount <br />that has been calculated reflects a more realistic and accurate <br />bond amount. Please call if you require additional information. <br />Sincerely, <br />~% <br />~ Ralph L pez <br />Environmental Engineer <br />