2009-04-01_REVISION - C1980005 ‎(2)‎

• Permit No: C1980005
• IBM Index Class Name: REVISION
• Doc Date: 4/1/2009
• Doc Name: Proposed Decision and Findings ‎(Old)‎
• From: DRMS
• To: Seneca Coal Company
• Type & Sequence: SL3
• Email Name: DTM
• 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]
March 31, 2009
Re: Seneca II Mine (C-1980-005)
SL03 Phase II Bond Release Request BRB2 and BRB3
Reclamation Cost Estimate Summary
COLORADO
D I V I S I ON OF
RECLAMATION
MINING
SAFETY
Bill Ritter, Jr.
Governor
Harris D. Sherman
Executive Director
Ronald W. Cattany
Division Director
Natural Resource Trustee
The Division has completed a revised cost estimate for remaining reclamation liability following
the proposed Phase II Bond Release SL-3 at the Seneca II Mine. The new estimated cost for
reclamation of the interim and permanent program areas is $4,050,665.00. Estimated costs for
the pre-law areas remain unchanged at $285,484.00, so the total required performance bond for
the site will now be $4,336,149.00. The required liability will be reduced by $1,975,695.00. The
full cost estimate is available in the DRMS files.
Aside from the obvious reduction owing to our Phase II release proposal, there are other
changes in the estimated reclamation costs, mainly due to rising labor, equipment, and
materials costs. A brief summary of those changes follows.
Worksheet 00b: The total cost of reclaiming the remaining Wadge area access road rose
slightly because of higher equipment operating costs.
Worksheet 00c: As noted by SCC, the majority of the cost for these tasks is sealing of the wells.
Two years ago we did some research on well sealing costs which resulted in a reduction in our
estimated costs for well sealing, thus the total amount for this worksheet is reduced
considerably. Costs for reclaiming the ditches and truck wash ponds increased slightly due to
higher equipment operating costs.
Worksheet 00d: The total cost of reclaiming the landfill area rose slightly because of higher
equipment operating costs.
Worksheet 00e: The total cost of constructing postmine drainages rose slightly because of
higher equipment and materials costs.
Worksheet 00f: The total cost of facilities area reclamation increased significantly due to higher
equipment operating and labor costs, particularly for demolition of buildings.
Office of Office of
Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines