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3.2.3 F1N Cost Reduction - On Site Disposal <br />Approval of Henderson's request to dispose of demolition materials on the <br />Henderson property will result in significant cost-savings and concomitant <br />reduction in the FW. After reviewing actual and contractor-bid costs for structural <br />demolition and on-site disposal at Climax and other non-CMC mining operations, <br />DMG accepted $0.13/cubic foot as a unit cost for demolition and disposal for FW <br />purposes at Climax. The costs associated with demolition of concrete floors and <br />footings was demonstrated as being inclusive at that site and accepted <br />accordingly by DMG. Henderson requests that this unit cost number be factored <br />into the DMG FW calculation, resulting in a total reduction of $8,078,391 for <br />structural demolition components in Area 1 (01a), Area 3 (03a), Area 5 (OSa}, and <br />Area 16 (18a). <br />3.2.4 FVY Cost Addition - On Site Disposal <br />Although significant cost reductions are realized with on site disposal of <br />demolition debris, there are several cost additions associated with disposal <br />operations that must be added back to the FW. Section 4.0 shows these specific <br />costs by DMG Task number. <br />3.2.4.1 Materials Testing for On Site Disposal <br />Based upon experience developed at Climax, Henderson believes, conservatively, <br />that approximately ten (10) composite TCLP samples collected for each of the four <br />areas referenced in Section 3.2.3 (d0 total samples) will be suitable for materials <br />characterization. At an estimated $100 per sample, Henderson proposes the <br />addition of a "Materials Testing" component to the DMG FW of $4000. <br />3.2.4.2 Detnoftt4on Materials Disposat <br />When structural demolition and disposal operations are complete, No. 2 and No. 5 <br />shaft at the mine (Area 1) will be sealed, and disposal sites at the mill side of the <br />divide wilt be covered with fill material, graded and revegetated. Revegetation of <br />the two sites at the mill will utilize the Henderson seed mix and will be consistent <br />with tasking and costs associated with DMG Tasks 05d and 18c, respectively, for <br />the coal yard site and the landfill site. Acreage for calculations are 7.5 for the coal <br />yard site in Area 5 and 1.0 for the landfill location in Area 18. The coal yard site <br />requires no cost increase over DMG Task 05b as coal yard slope reduction and <br />revegetation costs were factored into this task initially by DMG (DMG Task List and <br />s <br />