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Section 780.18(b) Continued Revised June 13, 1984 <br />Reclamation Bonding Cost Estimates <br />Pursuant to the requirements of the MLRD Mid-Term Permit <br />Review of the currently approved Permit (No. C-006-80) and <br />subsequent telephone conversations outlined in a letter from <br />Kerr Coal to MLRD dated May 29, 1984, the reclamation bonding <br />cost estimate has been re-evaluated. The above-mentioned <br />letter is included in Exhibit 58 as Appendix 1. <br /> Due primarily to slow production rates experienced since <br /> initial permit approval (1980), all activities associated <br /> with the mine are confined to the southern end of the mine <br /> plan area, within Bonding Increment No. 1 shown on Map 46. <br /> This in combination with the fact that Kerr Coal plans to <br /> <br />• significantly revise the currently approved mining plan and <br />~ thus the backfilling, grading and bonding plans to <br /> accommodate current economic conditions, led to the decision <br /> to re-evaluate the bond based on the estimated cost to <br /> reclaim the mine in its current state. Using 1984 equipment <br /> rental, labor, fuel and other rates, the total cost of <br /> overburden haulage required to backfill the existing pit and <br /> Pit 1 were calculated. Amounts for topsoil replacement, <br /> mulching, seeding, sedimentation pond removal, and haul road <br /> reclamation have been appropriately adjusted and added to <br /> arrive at the total bond amount. <br /> In the future when the mining and reclamation plan is <br /> revised, the entire bonding scheme and associated bond <br />•; amounts will be re-evaluated and adjusted. Most probably the <br /> revised plan will include incremental bonds similar to those <br />780-63 c <br />