2008-01-08_REVISION - C1981038 ‎(2)‎

• Permit No: C1981038
• IBM Index Class Name: REVISION
• Doc Date: 1/8/2008
• Doc Name: 3rd Adequacy Review Letter
• From: DRMS
• To: J.E. Stover & Associates
• Type & Sequence: SL3
• Media Type: D
• Archive: No

Allp-
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]
January 8, 2008
Jim Stover, P.E.
J. E. Stover & Associates
P.O. Box 60340
Grand Junction, CO 81506

COLORADO
D I V IS I ON OF
RECLAMATION
MINING
SAFETY
Bill Ritter, Jr.
Governor
Harris D. Sherman
Executive Director
Ronald W. Cattany
Division Director
Natural Resource Trustee
RE: Bowie No. 1 Mine, Permit No. C-81-038, Bowie Resources LLC
SL-3, Partial Phase One Bond Release, Third Adequacy Review Letter
Dear Mr. Stover:
The Colorado Division of Reclamation, Mining and Safety (Division) has finished its review of
the reclamation bond release calculation for Bowie Resources LLC's (BRL) Partial Phase One
Bond Release (SL-3) at the Bowie No. 1 Mine unit train loadout.
The amount of bond that the Division can release, based on Rule 3.03.1(2)(a), is $1,136,354.00,
as shown on the attached one page main summary sheet entitled "SL-03 Final Releasable
Amount". This amount is $15,102.00 less than the amount requested by BRL (of
$1,151,456.00). This difference is probably due to rounding errors and slight differences in
calculation methods. It represents a 1.3% reduction in the amount requested. All of the dollars
used for the SL-3 calculations are "old" dollars. That is, they have not been adjusted for inflation
and/or new costs and are from the 2005 Midterm Review reclamation cost estimate. As a note,
this main summary sheet also includes references to the Permit Renewal No. 5 reclamation cost
estimate, which is further discussed in the RN-5 adequacy review letter dated January 8, 2008.
The SL-3 releasable amount is based on an applicable bond amount of $2,688,882.00, which is
shown on another of the attached one page summary sheets. This amount includes all of the
structural demolition at the loadout, of which up to 60% may be released. In the case of SL-3 at
Bowie No. 1, however, not all of the demolition at the loadout has been completed. This changed
(decreased) the applicable amount accordingly. The individual releaseable structural demolition
costs amounting to $1,554,653.09 are shown on the attached four pages of structural demolition
worksheets. The total releaseable costs are shown on the one page summary sheet and amount to
$1,893,923.47. This amount ($1,893,923.00) becomes the new applicable amount which the
releasable amount is based on.
Please review the proposed reclamation bond release amount for SL-3 and inform the Division in
writing whether or not the amount is acceptable to BRL.
Office of
Mined Land Reclamation
Denver • Grand junction • Durango
Office of
Active and Inactive Mines