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<br />Letter to Anne Beierle -4- October 2, 1996 <br />7. CMC has estimated the cost for haulage tunnel bulkhead installation <br />at $200,000.00. Please find attached a tabulation of direct costs for a <br />recently installed 25 foot bulkhead. The total direct cost from the <br />tabulation of $341,000.00 is believed to be closer to the costs that may <br />be incurred by the Division in a bond forfeiture situation than the <br />$200,000.00 cost estimated by CMC. If a longer bulkhead is required, as <br />discussed in item ~`5 above, the difficulty and cost of bulkhead <br />installation could increase substantially. Once a length for the bulkhead <br />has been established to the mutual agreement of the Division and CMC, we <br />will need to further discuss the amount of bond required. Please be aware <br />that the following indirect costs will have to be added to the amount of <br />bond required for both bulkhead installation and water treatment, once CMC <br />and the Division have reached agreement on these amounts: <br />Indirect Costs: Public Liability Insurance.. 1.55$ dir. <br />Performance Bond ............ .975$ dir. <br />Contractor's Profit......... 10.0$ dir. <br />Contractor's Contingency.... 2.0$ dir. <br />Minerals Program Administration Fee @ 5.00$ of contract <br />In order to maintain the "decision date" process that is mandated in the <br />regulations for review of technical revisions, please specify a date by <br />which CMC believes the issues raised in this letter can be resolved. <br />If you have any questions, please contact me. <br />Sincerely, <br />Allen C. Sorenson <br />Reclamation Specialist <br />enclosure(s) <br />C:\WP51\HENDADQ.TR6 <br />