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2 38. Response accepted. 39. Response accepted. Reclamation Cost Estimate The Division prepared a cost estimate for PR-01 which roughly parallels the estimate submitted by SCC. The Division's estimate is roughly $1.9 million higher than SCC's. I am enclosing a summary of the cost estimate with this letter. I will send the entire estimate to Tom Leidich, as we discussed yesterday. I would suggest that after you and Tom review the Division's estimate, we plan to meet and review the discrepancies between the two estimates. A meeting would give us a chance to address differences in the two estimates effectively. It would also give us an opportunity to clarify any assumptions that SCC or the Division may be making about the timing and progress of mining and reclamation operations relevant to the reclamation cost estimate. Here is a brief synopsis of the sources of most of the discrepancies, which amount to a total difference of $1,883,324.00. The majority of the increase is from only a few tasks that are outlined below. For the most part, all of the SCC's volume assumptions were used. The first major cost increase comes from drilling .and shooting the highwall, backfilling the pit and grading the spoil. The increase in cost for drilling and shooting the highwall was $74,934. The main reason for this increase was the inclusion of blasting caps and cord in the cost estimate and using a job efficiency factor of 0.83. Dozing the highwall and grading the adjacent (first) spoil ridge accounted for an increase of $90,934. This difference most likely comes from a difference in estimating programs (as all SCC's assumptions were used). Grading the remaining three spoil ridges accounts for the majority of the increase, $506,549. The reason for this large increase is the Division has used the entire 2,464,274 cubic yards of spoil remaining from the pit (pit volume -first ridge volume estimate). The Division used this volume because SCC stated that the "neck pit" will only be one or two pit widths, which means that spoil will be placed on "undisturbed" land and not spoil from a prior pit. If SCC can provide a more detailed operations plan, this number can be adjusted accordingly. These three items account for a total increase of $672,417. The second area where there are major cost increases is in the demolition and final drainage construction. The demolition accounts for an increase of $166,756, primarily due to a difference in assumptions of the demolition is to be done and a difference in costs used. The final drainage construction accounts for an increasA of $139,377. This increase is because the Divisions estimate for