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-5- <br />BONDING <br />Estimated reclamation costs for the McClave Canyon Mine have been recalculated <br />by the Division. Please refer to the enclosed cost estimate for a detailed <br />breakdown of estimated costs. This estimate is preliminary in nature and needs <br />to be reviewed in detail by Salt Creek Mine Company to determine whether the <br />material quantities and task items accurately reflect site conditions and the <br />requirements of the approved permit. Major areas of difference between the <br />Division's estimate and the 10/20/88 estimate prepared by Salt Creek Mining <br />Company are described below: <br />Structural Demolition - Unit costs have increased slightly in MEANS, and the <br />iv~sion as a e powerline removal costs to this section. If the operator <br />can demonstrate that the lines and poles would be completely removed from the <br />site at no cost to the Division in the event of a bond forfeiture, or that the <br />surface owner specifically wants all or certain segments to remain, then some <br />or all of the estimated costs can be deleted. It has been the Division's <br />recent experience that even though powerlines may be the property of the power <br />company, the company will not remove the system at their expense. <br />Revegetation - Unit costs for revegetation remain unchanged from the <br />ivision s previous estimate. However, the Division has added costs for <br />anticipated seeding failure occurring during the bond liability period. This <br />has become a standard item in coal permit bond estimates. <br />Fencing - The unit cost for fencing has increased in recent years. The <br />ivision's unit cost is based on actual bid cost data obtained from AML <br />projects undertaken recently. <br />6645E/scg <br />