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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />INTEROFFICE Bill Ritter, Jr <br />Governor <br />MEMORANDUM Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />TO: Marcia Talvitie Division Director <br />Natural Resource Trustee <br />FROM: Jim Stark <br />SUBJECT: Elk Creek TR-60 Cost Estimate and Adequacy Questions <br />DATE: 18 November 2008 <br />Attached is the reclamation for the Elk Creek Mine's Technical Revision 60 - new Bear <br />Creek Fan Pad and associated facilities. The estimate is 8 tasks (a summary sheet and <br />tasks 141-147) and represents an increase in liability of $271,841.00. The estimate as <br />completed makes two assumptions. The first assumption is that the fan shaft will be <br />backfilled with dirt and capped with a concrete cap. The second assumption is that there <br />will be one foot of topsoil removed and replaced at the site. <br />In addition to the estimate, there are three adequacy questions that Oxbow will need to <br />address. Oxbow's answers to these questions could change the liability for TR-60. If <br />any changes are necessary based on Oxbow's adequacy responses, the estimate will be <br />updated. The following are my adequacy questions. <br />Table 2.05-E5-T1 shows a topsoil removal and replacement volume of 1,000 <br />cubic yards for the Bear Creek Fan Pad. The Table also shows a topsoil <br />replacement depth of one foot for the Bear Creek Fan Pad, which equals a <br />replacement volume of approximately 3,700 cubic yards. These two entries are in <br />disagreement. The one foot replacement depth, 3,700 cubic yards, was used in <br />calculating the reclamation cost estimate (task 145). Please review the topsoil <br />replacement depth and volume for the Bear Creek Fan Pad contained in <br />Table 2.05-E5-T1 and correct the erroneous entry. <br />2. There are no detailed closure plans given for the Bear Creek Fan shaft. As such, <br />the Division has estimated for backfilling the entire depth of the shaft and using a <br />concrete cap, poured in place, as the closure method. The estimated closure is <br />detailed in Task 141 of the Division's reclamation cost estimate. Please provide <br />the Division with a detailed closure plan for the Bear Creek Fan shaft. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines