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September 1, 2004 <br />The task that required the Table on page A-4 is no longer necessary, hence the zero values in the revised <br />table. No further response is necessary from the operator. <br />4. Appendix 13, revised table A-6 shows that no new topsoil stockpiles have been created or utilized since <br />1997. Since mining has progressed over the past 6 'h yeazs, the Division questions if the topsoil <br />stockpile values aze currently correct for 2004? <br />Colowyo responded that topsoil volumes have not been updated to reflect 2004 worst-case. The worst- <br />case disturbance scenazio is still based on 1997 worst-case disturbance. The Division acknowledges <br />that the 1997 worst-case" disturbance scenario was likely a larger amount of unreclaimed disturbance <br />than the unreclaimed disturbance existing on the mine site in 2004. Colowyo has declined to update <br />Table A-6. The Division can accept the 1997 values. <br />5. Colowyo submitted revised Appendix 13, C-1, C-la, and C-lb. These hourly equipment rates vary <br />significantly from the Division's CIRCES hourly equipment rates. DMG last updated the CIRCES <br />program rates in 2003. These values are obtained from second and third quarter 2003 values provided <br />by Colorado Department of Transportation, Cost Reference Guide (CRG), and the Contractors <br />Equipment Cost Guide (CECG). <br />DMG's comments dated 8/8/2003 to Colowyo: <br />1) Exhibit 13, page iii of TR-56 provided references of resources used by Colowyo to develop the <br />reclamation cost estimate. The most recent data used by Colowyo is six years old or older. <br />Equipment and labor costs change significantly form yeaz to yeaz. Please have the operator revise <br />Colowyo's reclamation cost estimate using current equipment and labor costs. 2002 data is <br />available and would be found acceptable to the Division. <br />Colowyo's submittal, dated October 23, 2003, provided equipment unit costs updated using 2002 <br />resources, 2002 Cost Reference Guide for Construction Equipment, U.S. Department of Labor, and <br />Davis Bacon wage rates for Western Colorado. These values will be acceptable to the Division for TR- <br />56. These rates will need to be updated the next time the reclamation cost estimate is revised. <br />Colowyo's May 3, 2004 reclamation liability estimate totaled $19,171,621.00. This value is $2,857,276.00 <br />higher than that previously submitted by the operator in September 2003. Based upon the Division's review <br />and cost estimate of compazed reclamation tasks, the Division accepts Colowyo's reclamation cost estimate <br />value. The Division currently holds bonds totaling $16,000,000 (016-029-909 and 016-029-910 drawn on <br />Liberty Mutual Insurance Company). Colowyo will need to submit additional bond in the amount of <br />$3,171,621 to bring the bond held by the Division into agreement with the projected reclamation costs <br />associated with approval of TR-56. <br />