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iii iiniiiiiiiu iii • 999 STATE OF COLORADO DIVISION OF MINERALS AND GEOLOGY Department of Natural Resources. 1313 Sherman $t., Room 215 Denver, CO 80203 Phone: UOA 866-3567 FAX: 13031 832-8106 December 22, 1993 Dr. W.D. Corley, Jr. The Corley Company 635 Southpointe Ct. Colorado Springs, CO' 80906 Re: Volume Estimates for GEC East Pit Reclamation, Revoked Permit No. C-81-037. Dear Dr. Corley: OF ~or0 RN4 N~~ ~~ ~ r8~6 ~ Roy Romer Governor Michael 8. Long Division Dveclor Following the December 1993 Board Meeting, The Corley Company expressed concern over the accuracy of the earth-moving volumes used to estimate the reclamation costs for the GEC project. We wish to provide the following response. The Division performed an extensive survey of the East Pit and Chen's Hill areas using astate- of-the-art total station. Over 2,300 surveyed data points were used in an extremely sophisticated survey and map generation program to produce the topography maps used in the bidding documents. The topography maps were reconfigured to reflect the 3:1 slopes proposed for the reclamation of the East Pit and Chen's Hill. These maps (more specifically the three-dimensional grid points used to generate these maps) were then analyzed by the same computer program to generate the volumes associated with the proposed tasks. Following the generation of these project volumes, the Division calculated the estimated project costs using the Division's cost estimating program. This program uses the latest cost figures from sources that include Caterpillar, Inc. and the Associated General Contractors of America. When the Division receives bids for reclamation projects, the award usually goes to the bidder that can achieve the majority, if not all, of the goals of the project at the least expense. Should the East Pit/Chen's Hill project receive bids that are slightly higher than the funds currently available, the project will be awarded to the lowest bidder, and the bid document amended to reflect revisions in the project's goals that more closely fit the funds available. Should the East Pit/Chen's Hill project receive bids that are significantly higher than the funds available, the bid process would be discontinued, the project's goals revised, a new bid document developed, and a new bid process initiated.