2008-06-20_REVISION - C1981044 ‎(2)‎

• Permit No: C1981044
• IBM Index Class Name: REVISION
• Doc Date: 6/20/2008
• Doc Name: Memo & Cost Estimate
• From: Jim Stark
• To: File
• Type & Sequence: RN5
• 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]
C
C
INTEROFFICE
MEMORANDUM
TO: Eagle Mine Complex File C-1981-044
FROM: Jim Stark
SUBJECT: RN-05 Cost Estimate
DATE: 20 June 2008
COLORADO
D IV IS I ON OF
RECLAMATION
MINING
SAFETY
Bill Ritter, Jr.
Governor
Harris D. Sherman
Executive Director
Ronald W. Cattany
Division Director
Natural Resource Trustee
This memo is to document the completion of the attached reclamation cost estimate for the
Eagle Mine Complex for Permit Renewal 05. The estimate was completed on 19 June 2008
and consists of 68 tasks (a summary sheet and tasks 001-093). The revised liability for the
site is $3,339,467.00.
The revised liability is $125,459.00 less than the current liability (of $3,464,926.00) and
$213,212.00 less than the current bond held (of $3,552,679.00). There are two main reasons
for this decrease. First, "old" task 06a, Seal North Angle 7 Borehole, (new task 002) was
calculated incorrectly. The "old" cost was more than $135.00/linear foot for the 1,500-foot
borehole. The cost used for sealing this hole was an all-inclusive cost for a short (7-10 foot)
surface plug, not a cost for sealing the entire length of a borehole. The "old" cost for sealing
this borehole was $202,964.00. The new cost for sealing this hole is approximately
$9,500.00, a decrease of more than $193,000.00. Second, the wrong dozer was used for
"old" task 018, Cover Portal 9 Refuse and Facility Area with Berm Material. This task is for
pushing almost 420,000 CCY a distance of 350-feet, at a cost of $626,362.00 and a total
work time of 992.94 hours. The dozer used in the "old" task was a CAT D8R. This dozer is
too small to accomplish this task in either an efficient or timely manner. The dozer for this
task was changed to the larger CAT D 1 OR. The new cost is $447,133.00 over 416.10 hours
(a decrease of $179,229.00 and 576.84 hours). The net decrease for these two tasks
(approximately $372,000.00) helped to offset some of the cost increases for the equipment,
demolition, reseeding and job superintendent.
Overall the Division still holds enough bond monies to complete the reclamation of the site in
the event of permit revocation and bond forfeiture. BTU Empire can request a bond
reduction for the amount held over the required liability with either Technical Revision or
Bond Release application.
cc: Sandy Brown w/out attachments
Office of Office of
Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines