PERMFILE130578

• Permit No: M1977306
• IBM Index Class Name: Permit File
• Doc Date: 10/1/1999
• 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

-~ 9708648287 COTTER NUCLR 062 P01 SI III IIIIII'IIIIII~III
• • 9s9
COTTER CORPORATION 28151 DD Road
~ P.O. Boz 700
Western Slope Operations Phone [phone]
Nucla, CO 81424-0700 Fax [phone]
September 28, 1999
RECEIVED
OCT O1 1999
Division of Mineray g G
~~y
Mr. Wallace Erickson
Colorado Division of Minerals and Geology
484 TtYttter Drive, Building F, Suite 101 !
Durango, CO 81301
Post-it• Fax Note 9671 ati~l S ~,- 3
7oWM1 £RGKS.~ F1b1n ~ ~r~1r
co.ioao~.O co.
Phone • Phone
Fu A Fe:1
Received
Re: Permit No. M-77-306, JD-9 Mine, response to bond re-calculation costs '~P Q $ ~!-Iy~.
Dear Mr. Erickson: Durango Field Office
Division or Minerals & Geology
Cotter Corporation is in receipt of your notice to increase the 5nancial warranty for the above
`~- captioned mine. Cotta wrrently carries a 515,700 DMG bond and a 572,000 bond held with
Lt.l r a acific Insurance company, to satisfy the DOE requirements. Increasing the State of Colorado
!~ O ~ bond amount from $15,700 to $43,949 would place the total finanaal warranty at almost
~ ~ ~ o ~ $I 16,000. It would appear to be somewhat excessive. According to Cotter's calculations, the
~t° t M
~ _, ] ~ ~ bond amount should be S31,672.
`' r q In response to the Division's recommendation, Cotter has prepared a revised reclamation cost
~~ ~ h' estimate. This revised reclamation cost estimate is based upon a review of the Division's 21 pages
~ `r ; •, i ; ; ~ of summaries, worksheets and data sheets used to estimate DMG's cost of reclamation.
;-
`' " ~ ~J ~ ~:; 1 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 Ml Demolish and remove all mining structures and debris.
DMG's cost estimate of 513,082 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 510,915.
Task N2 Seal and safeguard edit and vent holes.
DMG has proposed sealing the three vent holes by purchasing two pre-fabricated panels at a cost
of 53,978.
Cotter proposes to use thrtc 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.