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~ STATE O~COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Depanmenl of Nalu ral Resources <br />131 3 Sherman SL, Room 215 <br />Denver, Colorado 60203 <br />Phunc (303) UbG~3567 <br />FAC~ 1303) U3'-8106 <br />MEMO <br />DIVISION OF <br />MINERALS <br />GEOLOGY <br />0.ECLA MATION <br />MINING•SA FETY <br /> Bill O.rens <br />DATE: January 4, 2001 eu.er^°r <br /> Creg E. Walther <br /> <br />T0. <br />DMG Coal and Minerals Staff Cost Estimators Eteculive Dueclor <br /> Michael B. Lon6 <br /> Division Dveuor <br />FROM: Tom Gillis <br />RE: Notice of cost increases in updated CIRCES estimating sofhvare <br />I have just completed updating the hourly equipment costs in the CIRCES software. Due to significant <br />increases in ru[erc.r[ rn[cs and fire! paces over the last year, plus a substantial increase in equipment <br />operator (ahoy rn[es over the last 5 years (rates not updated since 1995), the total hourly cost of owning and <br />operating constnlction equipment has increased by approximately 13.8°/r. The actual percent increase <br />varies depending on the type and size of equipment used. <br />As a result of higher hourly equipment costs, the total direct cost of completing any equipment-based <br />reclamation tasks will have a corresponding increase in cos[. <br />Example: Cat D8N Dozer 1999 costs 2000 costs "/° increase <br />Ownership $/hr $41.10 $44.00 7.1 <br />Operating $/hr $55.64 $64.40 15.7 <br />Operator $/hr $23.12 $27.99 21.1 <br />Total $/hr $119.86 $136.39 13.3 <br />Due to such a significant increase, Bruce Humphries has requested that all specialists include a cover letter <br />with any bond calculations we send out, explaining the reasons for the increase. <br />/tdg <br />cost2000.doc <br />