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.~ U IIIIIIIIIIIII III sss [:7 :' Q 9708647267 COTTER NUCLA C~ER CORPORATION • Western Slope Operations Noels,~~eE~424-0700 rn g May 14, 1999 MAY _ 7 1999 t7 ~ `~ Mr. Wallace Erickson ... erabt+Gedo4Y LL o Colorado Division of Minerals and Geology °c. ~ 484 Turner Drive, Building F, Suite 101 m ~Durartgo, CO 81301 041 P01 MQY 14 '99 10 17 28151•DD Road J'.O. Boa 700 Phone (9'70) 864-7347 Faz (9'TO) 864-7287.---- .~ Post-It• Fax Note 7671 Dete ~ ~ ~~- q To~ 7/liGk$oy Front ASS (.o.lDept. M Q0. ~p >~z1L Ptgne • PMea n FeX N PeM r Oa ~ oRe: Permit No. M-77-284, Mineral Joe, response to bond re~calculat6on costs Dear Mr. Erickson: U_ lL LL. O l1J 0 ~- 4 U W _J U J d It was aoted in the Division's inspection report, dated March 18, 1999, that the Snancial warranty for the Mineral 7oe Mine should be increased from S 12,000 to 531,426. Jn respons+: to the Division's recommendation, Cotter has prepared a revised reclamation cost estimate. This revised reclamation estimate is based upon a review of the Division's 20 pages of summarie,t, worksheets and data sheets used to estimate DMG's cost of reclamation. Cotter's review of the. Division's cost estimate is summarized in the following paragraphs. In addition Cotter has prepared Table I (see attached) which summarizes DMG's and Cotter's reclamation cost estimates. 7'he only site visited for the Mineral Joe Mine Sites was the Duggan Adit site, which has an affea,~ acreage of 2.5 acres. The Mineral Joe 2, Mineral Toe 12 and the Climax Camp arcs also have a total affected acreage of 2.5 acres, making the total affected acres for the Mineral Joe Sites 5.0 awes. DMQ estimated the cost of removal and disposal of the compressor shed to be 5407. Cotter's estimate is based on knocking the tin shed down with a dozer, removing the tin and IwtTUng the wood. This should take 1 hour of dozer time at 5100 per hour and 4 hours of labor :it S23.SOfhour for a total cost o£ 3194. There are six tar paper and two tin wvered structures on the Mineral Joe Sites. Cotter estimates the cost at 5194 each, for a total of S1,i52. The compressor shed concrete floor or the shop floor ai Mineral Joe 12 can be used instead of the pre-tab slab in task #2. Substation concrete pad - there is no concrete pad associated with the substation. The DMG cost estimate of 5322 should be removed. The Divisions cost estimate is 51,045 to remove S00' of single pole power line. Cotta would have the line at the Duggan Adit and the Mineral 7oe 12 removed by San Miguel Power Association. Their boom truck and two men costs 5130/hour. Estimated time to rrnlove these power lines is 7 hours, for a total cost of 5910. Light rail $om the portal to the loadout area at the Duggan Adit and Mineral Joe 2 am be cut up and sold for scrap iron. DMG estimated cost 5617. Cotter estimates 5108 for oxygen and acetylene plus 16 hours oflabor at 523,50/hour for a total cost of 5484.