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Mr. Ross Gubka, P.E. Western Fuels-Colorado February 9, 2007 Page - 14 - 2. WFC notes that "a second thought would be to use the Cat 992 Loader and haul trucks (from Task 5 of hauling Mt, Nucla) to load the debris and haul to pit. This would probably be cheaper than what I proposed." The Division's 27-Oct-2006 cost estimate (which WFC reviewed) utilizes a loader and haul trucks to remove the debris. Task #025 1. WFC is correct; the Division used the cost of all new pipe for this task. If WFC is proposing relocation of the existing pipe, please clarify this in the permit. Also, please include a plan for rerouting the water during relocation and ensuring that water use is not interrupted during relocation, as required by Rule 2.04.7(3). It is our understanding that WFC will provide the Division with actual costs from its contract for completion of this work which can be used to revise the cost estimate. 2. WFC can apply for bond release on this task as soon as the work is complete. Task #030 1. Page 2.05.2-4 states that "the remainder of this permit term will mine to Cut 89..." Page 2.05.3(3)-20 of the 2003 permit states that "...typically the mine strips topsoil from one to three pit widths (115 ft to 345 ft) ahead of the pit at any one time..." That would put stripping to Cut 92. Please clarify the maximum stripping distance ahead of the pit and revise the permit accordingly. 2. Ownership costs apply to all equipment hours, regardless of whether it is idle. Even if a machine is sitting idle, the costs of the operator and equipment ownership (depreciation, cost of funds (CFC) and overhead) will apply. Operating costs (fuel, lube, ground engaging components, tires/tracks, repair, and overhaul), are applied only when the machine is working. In this case, the operating costs are 50% while the operator and ownership aze 100%. 3. The task has been revised in accordance with current Caterpillar specifications. 4. See General Comment Item 2 above. 5. The Division cannot give credit for reclamation work completed until a bond release (which would indicate that the Division has concurred and made a written finding that the work has been performed in accordance with the approved reclamation plan and the Rules) has been approved for that work. Accordingly, even if WFC has plans to selectively handle topsoil, the Division cannot assume that the topsoil has been placed in accordance with the Rules and reclamation plan until bond release has been granted.