PERMFILE123617

• Permit No: M2005080
• IBM Index Class Name: Permit File
• Doc Date: 9/29/2006
• Doc Name: SR Request
• From: DRMS
• To: Environmental Alternatives Inc
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
September 29, 2006
Angela Ballantoni
Environmental Alternatives, Inc.
402 Valley Road, Suite G
Canon City, CO 81212
RE: Allen Drilling and Excavating Co., Inc. File No. M-2005-080
Allen Pit 112(c) Surety Reduction Request (SR-01)
Deaz Ms. Ballantoni
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COLORADO
DIVISION OF
RECLAMATION
MINING
- &-
SAFETY
Bill Owens
Governor
Russell George
Executive Director
Ronald W. Cottony
Division Director
Natural Resource Trustee
The Division received a request for a surety reduction for the above permit, on September 19, 2006. The request
identified multiple items aimed at reducing the final bond amount for the site. The Operator should be aware that the
bond amount for the site is calculated to cover costs incurred by the state for reclamation of the site. Such reclamation
is typically performed by contractors hired by the state. Therefore the costs and considerations for the Division differ
than for those of the Operator who have resources available to him or her, for which the state will need to contract.
Listed below are referrals to the items in the request and the Division's response to these items:
1. Mobilize/Demobilize: The request letter indicates that the equipment needed for reclamation of the site can
be obtained in Fairplay -rather than Buena Vista - as was used as the nearest major city in the original bond
calculation. Although the operator has access to the necessary equipment for reclamation in Fairplay, the
Division is limited to equipment that is accessible to the state for use and to contractors available for
reclamation work to be performed for the state. Therefore the Division bases mobilization and
demobilization fees for acquisition of equipment on the neazest major cam. Fairplay is not considered a major
city in this sense. Therefore, the Division is required to utilize costs based on a larger radius than the distance
to Fairplay. The letter additionally inquires as to the need for a pickup truck - as was included in the original
bond. Reclamation performed for the state requires oversight by a supervisor or project manager. It is
common practice in bond calculation to supply this individual with transportation to, from, and around the
site.
2. Bulldozer Ripping Work: The request letter indicates that the area to be ripped for reclamation of the site
includes only the access road (approximately 0.5 acre) and the plant area (approximately 1.5 acres). The
original bond calculation included ripping of the pit floor, an additional 10 acres. The bond has been
recalculated for this portion of reclamation for the 2 acres requiring ripping. As a result, costs associated with
ripping work have been reduced from $3,017.00 to $508.00.
3. Grading: The request letter indicates that the reclamation plan submitted with the permit application
proposed to use a loader and dozer to grade the overburden and topsoil during reclamation, and the Division
estimate used only a dozer. The Operator proposes that use of a loader and dozer, rather than a dozer alone,
will reduce the costs and the time required for the grading work. The Division has recalculated this task
using a loader and recalculated the task using scrapers (see enclosures -Loader costs only -not including
mobilization and support dozer = $13,381; Scraper costs -not including mobilization = $17,118.00). Both
the use of a loader or scrapers exceeds the calculated costs for grading when using a dozer alone. Therefore,
it is more economical for the Division to use a dozer for reclamation, should it be necessary for the state to
perform the reclamation, and the Division would opt to use a dozer alone. Thus the bond amount should
reflect this anticipated cost, and the Division will continue to use the cost for grading with a dozer; alone, in
the calculated grading costs.
Office of Office of
Mined Land Reclamation Active and Inactive Mines