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4 <br />STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 C O L O R A D O <br />Denver, Colorado 80203 n[ v t s t o N o 'r <br />Phone: (303) 866-3567 RECLAMATION <br />FAX: (303) 832-8106 M I N I N G <br />-&- <br /> SAF ETY <br /> Bill Ritter, Jr. <br />INTEROFFICE Governor <br /> Harris D. Sherman <br />MEMORANDUM Executive Director <br /> Ronald W. Cattany <br />TO: Joe Dudash Division Director <br />Natural Resource Trustee <br />FROM: Jim Starks=Z:.~ <br />SUBJECT: Bowie No. 1 Mine SL-03 and RN-OS Cost Estimates <br />DATE: 3 January 2008 <br />Attached are the reclamation cost estimates for the Bowie No. 1 Mine's Partial Phase I <br />Bond Release SL-03 (structural demolition at the loadout) and Permit Renewa105. <br />Additionally, there is an attached summary sheet showing the amount of bond the <br />Division can statutorily release under Rule 3.03.1(2)(a). <br />The amount of bond that the Division can release, based on Rule 3.03.1(2)(a) is <br />$1,136,354.00. This amount is $15,102.00 less than the amount requested by BRL (of <br />$1,151,456.00). This difference is probably due to rounding errors and slight differences <br />in calculation methods. It represents a 1.3% reduction in the amount requested. All of <br />the dollars used for the SL-03 calculations are "old" dollars. That is, they have not been <br />adjusted for inflation and/or new costs and are from the 2005 Midterm Review <br />reclamation cost estimate. <br />The SL-03 releasable amount is based on an applicable bond amount of $2,688,882.00, <br />which includes all of the structural demolition at the loadout, of which up to 60% may be <br />released. In the case of SL-03 at Bowie No. 1, however, not all of the demolition at the <br />loadout has been completed. This changed (decreased) the applicable amount <br />accordingly. Based on the Division's calculations, BRL has completed demolition at the <br />loadout with a total bond amount of $1,893,923.00. This amount ($1,893,923.00) <br />becomes the new applicable amount which the releasable amount is based on. <br />The Division also calculated a new liability (following the release of the demolition <br />completed with SL-03) for the Bowie No. 1 Mine in current dollars (costs adjusted for <br />inflation, etc.). The new liability calculated for RN-OS is $4,123,457.00. The Division <br />currently holds a corporate surety in the amount of $5,761,290.00. Based on the amount <br />the Division has calculated for the Partial Phase I Bond Release SL-03 ($1,136,354.00), <br />the Division will hold a bond of $4,624,936.00. This is an excess in bond of <br />Office of <br />Mined Land Reclamation <br />Denver Grand Junction Durango <br />Office of <br />Active and Inactive Mines <br /> <br />