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First, the double or "H" pole line servicing the mine will remain following reclamation per Section IV.E of the permit application. What was the general magnitude of the Hawk's Nest Mine power line removal project? If it was a small project it may explain the high unit costs for removal. Also, were the escalators found on the "Cost Summary Form -Indirect Costs" properly backed out of the bid price for calculation purposes? What is referred to as the "lazger structural steel box frame unit"? If this refers to power line support structures it doesn't have any applicability to the Deserado Mine even though "Engineers for the Deserado Mine" were referenced as the source of DMG's information. There are no such structures currently on the mine site and such information, regardless or its origin is not applicable to this site. d. Conveyor Demolition Thank you for identifying the data source. While the unit costs seem within reason we need to be sure that the escalators found on the "Cost Summary Form -Indirect Costs" properly backed out of the bid price for calculation purposes. Please confirm that proper adjustments were made to the data to back out the cost escalators. e. Culvert Removal Costs DMG's response was "See attached Unit Cost Menu and associated Unit Cost Calculation Table-Pipe demolition costs." However, the referenced material was not attached to the response. Please provide this information to help cleaz up questions concerning cost estimates for culvert removal. As stated, the unit costs include many tasks already undertaken by or irrelevant to removal during reclamation. Please modify these costs to cover only the culvert extraction and demolition as these are the only items not already covered by the earthwork activity. 12. Revegetation Costs Due to the outdated cost data presented by DMG we conducted a contractor survey to accurately assess representative costs for revegetation tasks. Seven contractors experienced in large scale reclamation projects were contacted and asked to provide representative estimates of unit costs for total site reclamation of the Deserado Mine. All seven provided this information. The data and summary of this information are attached. Five of the seven presented what we would consider representative bids. The other two provided grossly high bids indicating excessive greed and should not be considered. Such high bids should be quickly weeded out, either through competitive bidding or by being pulled from the initial prospective bid list. January I5, 2003 8 Permit Revision #4 Comments Blue Mountain Energy, Inc.