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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 C O L O RA D O <br />Denver, Colorado 80203 D IV I S 10 N o f <br />RECLAMATION <br />Phone: (303) 866-3567 MINING <br />FAX: (303) 832-8106 <br /> SAFETY <br />March 24, 2009 Bill Ritter, Jr. <br /> Governor <br />To: Dan Mathews Harris D. Sherman <br />Executive Director <br /> Ronald W. Cattany <br />From: Susan Burgmaier Division Director <br /> Natural Resource Trustee <br />Re: Seneca II Mine (C-1980-005) <br />SL03 Phase II Bond Release Request BRB2 and BRB3 <br />Reclamation Cost Estimate <br />I have completed a revised cost estimate for remaining reclamation liability following our <br />proposed Phase II Bond Release at the Seneca II Mine. The new estimated cost for <br />reclamation of the permanent program areas is $4,050,665.00. Estimated costs for the pre-law <br />areas remain unchanged at $285,484.00, so the total required performance bond for the site will <br />now be $4,336,149.00. We will be releasing $1,975,695.00. My cost estimate is attached. <br />Aside from the obvious reduction owing to our Phase II release proposal, there are other <br />changes in the estimated reclamation costs, mainly due to rising labor, equipment, and <br />materials costs. A brief summary of those changes follows. <br />Worksheet 00b: The total cost of reclaiming the remaining Wadge area access road rose <br />slightly because of higher equipment operating costs. <br />Worksheet 00c: As noted by SCC, the majority of the cost for these tasks is sealing of the wells. <br />Two years ago we did some research on well sealing costs which resulted in a reduction in our <br />estimated costs for well sealing, thus the total amount for this worksheet is reduced <br />considerably. Costs for reclaiming the ditches and truck wash ponds increased slightly due to <br />higher equipment operating costs. <br />Worksheet 00d: The total cost of reclaiming the landfill area rose slightly because of higher <br />equipment operating costs. <br />Worksheet 00e: The total cost of constructing postmine drainages rose slightly because of <br />higher equipment and materials costs. <br />Worksheet 00f: The total cost of facilities area reclamation increased significantly due to higher <br />equipment operating and labor costs, particularly for demolition of buildings. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand )unction • Durango Active and Inactive Mines