2006-02-15_REVISION - M1983141 (2)

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07/11/1996 10:37 303-247 74 DIVISION OF MINERALS AND GEOLOGY UaPanma^ of Naaaal Resowcaa t It l Sherman A.. Roam 215 Denrer, Colorado a0207 Phax:1303)l66.7567 iNC: (3071 L1id106 MINERALS 8 ~-! PAGE 02 STATE OF COLORADO D]1TSs Jtilly il, 1996. ~,~ Cewnar TO: esuce Humphries, Jim 8taveas, 1-llea eorsnsoa, La:rsyl,~raiiaq,d ueoa.e gncv 7RO1Ls Tole Gillis~o~ e«lwa•w~s grbbn Dihcmr R8s e>tmnyside 1[iae, pewit ]Te. 1[,77=37C, Review of Operator'^ Coat astimmte !or Hulkbead Beal lteplaeamant (T1t-is) . 2 have completed a rwiew of the operator'^ cost estimate for rsplaciag the bulkhead seals at the 1lmericaa is Tarry Tuaaels. In geaeral,• the estimate appears vary detailed wad thorough in the aaiculatioa of direct costs. The list of apacifia taslu wad associated costs ase probably as aoaurate retieation of the oparstor's direct espasienae with iastaliatioa of the bulkheads presently in place at the mina. 8owever, I do have soala eoaaeras regarding possible additional costs that eight be iacurrsd by the Division valor a future bulkhead replacement scenario as outlined below. 1. Colt savings items. The operator indicated that oertaia costs coataiaed is the operator's estimate would sot be incurred by the Division i! bulkhead raplaaameattras reQltired. 8oanvar, it would seam probable that cost, it nog all, o! the ^cost savings` iteals subtracted from the operator`s estimate sight vary well ba inoarred by the Division i! rapiaass-eat sere to oaaur altar miss laailitiss Nava bees deaoatmisaioaed as part o! Baal realamatioa, miaiag equipment has bean ssmovad, utilities disaotoasated, and mica entry areas reclaimed. 7ldditioaally, other sigaificaat costs may be incurred depandiag oa the nature wad escteat of bulkhead failure, wad how tar is the future failure occurs. Hera are some e>tamples s a. 9esatiiatian installation at etch site. =f laiiura ocavre attar camgslstiom o! final raolasatioa, it is logical to aasvma that vaatilatioa facilities at the surlac. Lava bean ramovad, wad veaeilatioa taailitiss underground have deteriorated due to lloodiag, roo! falls, sta. lugs it surlaoe ventilation taoilitiss were left on site, they may be is too poor of a condition to tunetioa due to a~IOSUre to the alsmeats, lack o! maiataaaaee, theft or vandalism. it .rould roam prudent to iaolude costr !or • Diviaioa hired contractor to either reiusbieh exiseiag ventilation systems or install a saw, temporary ventilation system.