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<br />Colorado Division of Minerals & Geology AGRA Project E94-7033 <br />Response to Adequacy Comments December 5, 1994 <br />Oowe Flats, Southdown, Inc. Page i31 <br />3. Exhibit L - Is Southdown, Inc. proposing to post the entire bond for the 385 acres of <br />disturbance during the life of the mine? Please include the cost of dismantling and removing <br />the conveyor system. The cost estimate should also Include 7 5.8% admirNStratlon cost plus <br />a 5% direct cost which totals 20.8% additional cost. <br />Southdown will post a bond for the 95-acre maximum disturbance in addition to the estimated <br />cost of conveyor removal. The conveyor has not yet been designed and will not be <br />constructed until 1996. This would make it difficult to establish an accurate estimate of <br />conveyor removal costs. <br />Southdown would recommend that a condition of approval be "The amount of the bond be <br />determined after completion of the conveyor design. In the meantime, Southdown will post <br />a bond at the original amount that included the much more extensive and expensive <br />"Innovative Reclamation Plan" previously approved by the MLRB". This provision would allow <br />for mine development activities to progress; while, a more accurate determination of an <br />appropriate bond amount is finalized. Southdown has no objectin to the administrative and <br />direct cost mark-up required by the division. <br />4. All six stipulations included In the approval of the original application remain in full force <br />and affect for this amendment application as well. <br />Southdown had previously agreed to the Board's six stipulations on the original permit and <br />has no objections to the same stipulations on the amendment. Some of the stipulations have <br />already been satisfied and the others are in the process of completion. <br />Please let me or John Lohr know if this response is satisfactory. <br />Sincerely, <br />AGRA Earth & EnvironmeQntal, Inc. <br />C.(~t~t~C ~CS~~e^~vG ~- <br />Paul Banks <br />Project Manager <br />cc: John Lohr, Southdown, Inc. <br />®AGRA <br />