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Mr. Ross Gubka, P.E. Western Fuels-Colorado February 9, 2007 Page - 2 - b. Volume vs payload -This is discussed in Item 2 of the General Comments section below. c. Double shift vs single shift -The Division has surveyed contractors in the past, and found that reclamation work on a forfeiture site the size of the New Horizon Mine would likely be completed in single, ten hour shifts. All tasks in the Division's cost estimate are based on single, ten hour shifts. d. Ownership costs on standy equipment -This is discussed in detail in Item 5 of Task #001, below. e. Chazging equipment ownership while being mobilized -The Introduction section of the Cost Reference Guide for Construction Equipment (2006, EquipmentWatch) states that "fixed costs, i.e. depreciation, cost of facilities capital, and indirect equipment related costs, must be accrued whether or not the equipment is working. Variable costs, i.e. overhaul, field repair, fuel, lubrications, tires, and ground engaging component allowances, should be accrued on a machine operating hour basis." 4. Using swell factors on materials in stockpiles - It is our understanding that the volume figures provided by WFC for materials in stockpiles aze based on a survey of the existing piles, which would suggest that when the material is moved, it is going to swell. 5. Moving 26 inch HDPE pipeline -This cost estimate may be revised when WFC provides the actual costs for relocation of this pipe. 6. Topsoil cost being tied to Phase II Bond Release... -Cost estimates for topsoil replacement will be revised when WFC provides information detailing which azeas will be included in their upcoming Phase II Bond Release application. 7. Job Superintendent at 34% of Task hours -this will be revised once the cost estimate for the entire site is finalized. 8. Haul BB Detour material to pit -WFC will submit a revised reclamation plan to the Division for the BB Road Detout. Apost-mining AOC map and cross- sections will need to be included in the revision. If the Division approves WFC's plan, the cost estimate may be revised accordingly. 9. Rip haul roads in 100 foot lengths -The Caterpillaz Handbook states that bulldozers have a maximum pass length of 300' before