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~ <br />~~ <br />COTTER CORPORATION <br />Western Slope Operations <br />Nucla, CO 81424-0700 <br />D,~~~ <br />A~~~/~ ~ <br /> <br />September 28, 1999 - °~t°: <br />~~~~ <br />Mr. Wallace Erickson <br />Colorado Division of Minerals and Geology <br />484 Turner Drive, Building F, Suite 101 <br />Durango, CO 81301 <br />Phone (970) 864-7347 <br />Fax (970) 864-7287 <br /> <br />~'% ®~~~ <br />~~_~_ _ ~ <br />.\ <br />~'~~~sn <br />,. <br />Rec~,~~d ,~~~ , <br />SEP 3 01999 <br />rke -o ONisp~ ~~ FieldOl/ <br />fol~~ Rer~ ~ ~o/p~, <br />RF~F~V~o <br />Re: Permit No. M-77-306, JD-9 Mine, response to bond re-calculatiq~~oo~~T 04 1989 <br />Dear Mr. Erickson: no,Ml ~~~~ Oeo/p~, <br />Cotter Corporation is in receipt of your notice to increase the financial warranty for the above <br />captioned mine. Cotter currently carries a $15,700 DMG bond and a $72,000 bond held with <br />Pacific Insurance company, to satisfy the DOE requirements. Increasing the State of Colorado <br />bond amount from $15,700 to $43,949 would place the total financial warranty at almost <br />$116,000. It would appear to be somewhat excessive. According to Cotter's calculations, the <br />bond amount should be $31,672. <br />In response to the Division's recommendation, Cotter has prepared a revised reclamation cost <br />estimate. This revised reclamation cost estimate is based upon a review of the Division's 21 pages <br />of summaries, worksheets and data sheets used to estimate DMG's cost of reclamation. <br />Cotter's review of the Division's cost estimate is summarized in the following paragraphs. In <br />addition, Cotter has prepared Table I (see attached) which summarizes DMG's and Cotter's <br />reclamation cost estimates. <br />Task #1 Demolish and remove all mining structures and debris. <br />DMG's cost estimate of $13,082 is based on a shop building of 72' long x 40' wide x 12' high, and <br />disposing of six PCB contaminated transformers. <br />Cotter agrees with all item costs in Task No. 1 except these two items: The shop building is 68' <br />long x 40' wide x 12' high; and there are no PCB contaminated transformers on site. Cotter's cost <br />estimate is $10,915. <br />#2 Seal and safeguard adit and vent holes. <br />DMG has proposed sealing the three vent holes by purchasing two pre-fabricated panels at a cost <br />of $3,978. <br />Cotter proposes to use three pieces of the reinforced concrete shop/dry floor, rather than <br />purchasing new prefab concrete panels to close the vent holes. This cost has been deducted from <br />the total sealing cost. <br />