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Applegate <br />Group; ~~~. <br />February 6, 2006 <br />Colorado Department of Natural Resources <br />Division of Minerals and Geology <br />Attn: Ms. Erica Crosby <br />1313 Sherman Street; Room 215 <br />Denver CO, 80203 <br />' RE: Bond Calculation Comments, Amendment AM-Ol for • - <br />Jake Kauffman & Son; Inc. Wagner/Kauffman Pit #3, M-1999-069 ~/ <br />Deaz Ms. Crosby: <br />The following ,discussion. is submitted on behalf of our client, Jake Kauffman & Son, Inc.; <br />in response 40 the Amendment AM-01 Approval letter for the Wagner/Kauffman Pit #3 and bond <br />calculations in your letter dated January 23, 2006. <br />Task 001- Pump Water from Pit to Facilitate Construction of the Clay Liner <br />The volume of water used in the calculation is 1,200 acie-feet. The amendment application <br />proposes that the current site conditions represent the maximum azea of disturbance during <br />mining. The current exposed mine pit is approximately 90 acres in size. From observations <br />prior to and during mining; the saturated thickness of the alluvial groundwater ranges from <br />approximately 5 to 8 feet. Assuming an average groundwater thickness of 6.5 feet, the <br />maximum volume of water. that would collect in the current pit would be 585 acre-feet. Using <br />the unit cost provided by the Division, we believe the cost for dewatering the pit should be <br />__ . __. $29,737: _... - - <br />Task 003 -Rip Shale from Pit Floor ' <br />The calculation has 278,300 cubic yards of shale being ripped from 115 acres of reservoir floor <br />with a dozer shank ripper. For completion of the reservoir, competent bedrock material does not . <br />. need to be ripped from the floor of the reserv_ oir. Weathered bedrock material will need to be. <br />. removed along the edges of the reservoir to expose competent bedrock for the liner footprint. <br />However, this material can be removed with scrapers, excavators, or dozers along with other <br />material handling activities. :Additional weathered- bedrock from the pit can be removed <br />similazly if additional material is needed for construction of the liner. We do not believe that <br />. ripping competent bedrock, as described in Task 003, is necessary. <br />,. 1499 West 120th Avenue, Suite 200 ~ - ~ _ - (303) 452-661t~-Fax (303) 452-2759 <br />' Denver, Colorado 60234-2759 ~ ~ ~ ~ www.applegategroup.com <br />