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Mr. Ross Gubka, P.E. <br />Western Fuels-Colorado <br />February 9, 2007 <br />Page-9- <br />4. The Division will review any drilling production documentation provided by <br />WFC and revise this rate as necessary. <br />5. Ownership costs apply to all equipment hours, regazdless of whether it is idle. <br />Even if a machine is sitting idle, the costs of the operator and equipment <br />ownership (depreciation, cost of funds (CFC) and overhead) will apply. <br />Operating costs (fuel, Tube, ground engaging components, tires/tracks, repair, and <br />overhaul), are applied only when the machine is working. In this case, the <br />operating costs aze 25% while the operator and ownership aze 100%. <br />6. The Division will revise this cost accordingly, based on 15 hours of explosives <br />prep time at $56.40 per hour for the bulk truck. <br />7. The Division's cost estimate was based on a 2-person crew loading with an auger <br />rig. It includes 8001ineaz feet per hour and 0.05 hours setup time per hole to load <br />the blast holes, 0.05 hours per hole to install detonators, primers, and downlines, <br />4001ineaz feet per hour to backfill stemming, 1,200 linear feet per hour to lay out <br />and secure trunk lines, 0.05 hours per hole to connect downlines, delays and <br />check connections, and 0.5 hours to cleaz the blast area and install access barriers. <br />Task #005 -Scraper <br />1. This is correct. <br />2. This is correct. <br />3. This is correct. Both cost estimates were provided to lend support to and <br />documentation of the equipment selected for the estimate. Only the costs for <br />truck and loader estimate were included; the scraper estimate pages will be <br />removed from the cost estimate when it is finalized. <br />4. See General Comment Item 2 above. <br />5. The scraper cost estimate was based on an adjusted load of 25.86 yds, which is <br />the rated payload of the scraper (75,000 lbs) divided by the material weight (2900 <br />Ibs). <br />Task #005 -Truck <br />1. The Division is aware that the material was stacked "loose" ten years ago, but it <br />has consolidated and compacted over the past ten years (aided by the weight of <br />the vehicles that have driven over the pile to place items in the storage area on <br />top). It is our understanding that the volume figure provided by WFC is based on <br />