2007-11-29_REVISION - C1980005

• Permit No: C1980005
• IBM Index Class Name: REVISION
• Doc Date: 11/29/2007
• Doc Name: Revised Reclamation Cost Estimate
• From: Susan Burgmaier
• To: Mike Boulay
• Type & Sequence: SL2
• 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]
COLORADO
D I V IS I ON OF
RECLAMATION
MINING
SAFETY
Bill Ritter, Jr.
November 29, 2007 Governor
Harris D. Sherman
Executive Director
To: Mike Boulay Ronald W. Cattany
Division Director
From: Susan Burgmaier Natural Resource Trustee
Re: Seneca II Mine (C-1980-005)
Full Bond Release on Pre-Law Areas (SL-2)
Revised Reclamation Cost Estimate
Per your request, I have completed a revised cost estimate for the Seneca II Mine. The
cost estimate now reflects full bond release on 257.71 acres of Pre-Law area, and
separately assigns liability amounts to the Pre-Law and Permanent Program areas. The
total liability for the entire site is now $6,311,844.00. This includes $6,026,360.00 for
Permanent Program areas, and $285,484.00 for Pre-Law Areas. To better explain the
new cost estimate total, I offer the following:
1. The previous reclamation cost estimate was completed for the Phase I bond
release (SL-1) which included the Pre-Law areas (326.5 acres) and the
Permanent Program lands (1972.8 acres). The cost estimate totaled
$7,183,489.00 for 2,299.3 acres of disturbance (approximately
$3,124.21/acre).
2. Subsequent to the last cost estimate, DBMS and Seneca determined that it
would be most appropriate to separate out the Pre-Law areas. The bond held
for the Pre-Law areas was $1,355,000.00, based on previously approved
permit documents. That bond amount translates to $4,150.08 per acre for
backfilling/grading, topsoiling and reseeding the Pre-Law areas.
3. Seneca requested a release of $1,183,794.00. To check the requested bond
release amount, the Division recalculated the Seneca II cost estimate for the
permanent program areas by subtracting the topsoiling and reseeding costs for
the 326.5 Pre-Law acres from the Division's cost estimate. The backfilling
and grading costs had already been deducted for 259.1 acres in the SL-1
decision. The recalculated permanent program area cost estimate is
$6,026,360.00. (Details shown below.)
4. To determine the amount of bond release applicable for SL-2, the Division
added the cost to backfill/grade, topsoil and reseed the remaining 68.79 Pre-
Office of Office of
Mined Land Reclamation Denver - Grand Junction - Durango Active and Inactive Mines