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STATE OF COLORADO <br />MINED LAND RECLAMATION DIVISION <br />Department of Natural Resources <br />7313 Sherman St., Room 215 <br />Denver, CO 60203 <br />303 866-3567 <br />Fax. 303 8326106 <br />October 16, 1991 <br />Mr. Robert Hagen, Director <br />Albuquerque Field Office <br />Office of Surface Mining Reclamation and Enforcement <br />625 Silver Avenue, S.W., Suite 310 <br />Albuquerque, NM 87102 <br />RE: Deser~do Mine Proposed Bond Reduction (C-81-O18j <br />Dear Mr. Hagen: <br />OF' COQ <br />~~~ ~! <br />Ne <br />,~ d'o ~,. <br />• ~,~ . <br />~ ra 76 ~ <br />Roy Romer, <br />Governor <br />Fretl R. Banta. <br />Division Director <br />This letter is in response to a request from the AFO dated October <br />4, 1991 for more information regarding a proposed bond reduction at <br />the Deserado Mine. AFO requested further details on three items: <br />1. pavement removal costs <br />2. revegetation and fencing costs <br />3. project management costs. <br />The original bond amount approved by Mr.un in 1981 was based on very <br />conservative estimates submitted by the operator. The Division <br />realized at the time that those estimates were excessive. They <br />were accepted since they were more than adequate. Many of the <br />assumptions used in calculating that bond figure were revised in <br />the latest estimate to more accurately reflect the true cost of <br />reclamation of the site. Cost estimates in the new estimate are <br />based on current permit materials, Means Building Construction Cost <br />Data, 1991, the Caterpillar Performance Handbook, Edition 18, and <br />other documents identified on page V-69 of the application. A <br />detailed estimate of costs by task is included in the application <br />as well. It is difficult to provide additional details without <br />referring back to the cost estimates in the application however, <br />the following explanation is offered. <br />1. Table V-4 in the application contains a task by task <br />description of pavement removal based on site conditions and the <br />approved reclamation plan. Cost estimates for these tasks are <br />derived from the Caterpillar Handbook which the Division <br />customarily relies on. The original figure of $111,917 was derived <br />from Means Construction Data and was apparently a general and <br />conservative estimate. <br />