PERMFILE100347

• Permit No: M1977306
• IBM Index Class Name: Permit File
• Doc Date: 10/4/1999
• Doc Name: PN M-77-306 JD-9 MINE RESPONSE TO BOND RE CALCULATION COSTS
• From: COTTER CORP
• To: DMG
• Media Type: D
• Archive: No

~
~~
COTTER CORPORATION
Western Slope Operations
Nucla, CO 81424-0700
D,~~~
A~~~/~ ~

September 28, 1999 - °~t°:
~~~~
Mr. Wallace Erickson
Colorado Division of Minerals and Geology
484 Turner Drive, Building F, Suite 101
Durango, CO 81301
Phone [phone]
Fax [phone]

~'% ®~~~
~~_~_ _ ~
.\
~'~~~sn
,.
Rec~,~~d ,~~~ ,
SEP 3 01999
rke -o ONisp~ ~~ FieldOl/
fol~~ Rer~ ~ ~o/p~,
RF~F~V~o
Re: Permit No. M-77-306, JD-9 Mine, response to bond re-calculatiq~~oo~~T 04 1989
Dear Mr. Erickson: no,Ml ~~~~ Oeo/p~,
Cotter Corporation is in receipt of your notice to increase the financial warranty for the above
captioned mine. Cotter currently carries a $15,700 DMG bond and a $72,000 bond held with
Pacific Insurance company, to satisfy the DOE requirements. Increasing the State of Colorado
bond amount from $15,700 to $43,949 would place the total financial warranty at almost
$116,000. It would appear to be somewhat excessive. According to Cotter's calculations, the
bond amount should be $31,672.
In response to the Division's recommendation, Cotter has prepared a revised reclamation cost
estimate. This revised reclamation cost estimate is based upon a review of the Division's 21 pages
of summaries, 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.
Task #1 Demolish and remove all mining structures and debris.
DMG's cost estimate of $13,082 is based on a shop building of 72' long x 40' wide x 12' high, and
disposing of six PCB contaminated transformers.
Cotter agrees with all item costs in Task No. 1 except these two items: The shop building is 68'
long x 40' wide x 12' high; and there are no PCB contaminated transformers on site. Cotter's cost
estimate is $10,915.
#2 Seal and safeguard adit and vent holes.
DMG has proposed sealing the three vent holes by purchasing two pre-fabricated panels at a cost
of $3,978.
Cotter proposes to use three pieces of the reinforced concrete shop/dry floor, rather than
purchasing new prefab concrete panels to close the vent holes. This cost has been deducted from
the total sealing cost.