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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY M-1 qW -a ([?+ <br />Department of Natural Resources l ((//VV T <br />1313 Sherman St., Room 215 q COLORADO <br />Denver, Colorado 80203 D IV IS I ON OF <br />Phone: (303) 866-3567 RECLAMATION <br />FAX: (303) 832-8106 MINING <br />SAF ETY <br /> <br />INTEROFFICE Bill Ritter, Jr. <br /> Governor <br />MEMORANDUM Harris D. Sherman <br /> Executive Director <br /> Ronald W. Cattany <br />TO: Berhan Keffelew Division Director <br /> Natural Resource Trustee <br />FROM: Jim Stark <br />SUBJECT: CC&V Cost Model <br />DATE: 31 October 2008 <br />As requested, I have given the Cripple Creek and Victor Gold Mining Company <br />Reclamation Cost Model a preliminary review. This review included a review of unit <br />costs for equipment, demolition, revegetation and indirect costs. This review did not <br />include a review of relevant reclamation tasks, reclamation areas or volumes or a side-by- <br />side Division estimate. <br />A review of the equipment costs show that they are either the same or slightly higher than <br />those used by the Division. If all of the volumes used in the estimate are correct, these <br />unit costs will give an accurate estimate of the earthwork costs. <br />Demolition costs were taken from the 2008 edition of the RS Means cost guides. As <br />such, they are deemed to be accurate by the Division. The costs included in the estimate <br />were the same as those listed in Means. Per instructions, none of the structure <br />dimensions were verified by the Division. <br />The revegetation costs used for the estimate are either the same or slightly higher than <br />those used by the Division. Again, assuming that the correct acreages have been used, an <br />accurate reclamation cost should be obtained. None of the acreages were independently <br />verified by the Division. <br />The indirect cost portion of the estimate contains all of the necessary items with the <br />exception of a job superintendent. The job superintendent cost would possible push the <br />total indirect costs above the allowable limit of 23.5% (Rule 6.3.4(c)). It is up to the <br />Minerals Program to determine how to handle this issue. <br />Office <br />Office of of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines