2009-06-09_PERMIT FILE - C1980007

• Permit No: C1980007
• IBM Index Class Name: Permit File
• Doc Date: 6/9/2009
• Section_Exhibit Name: Exhibit 53 Reclamation Cost Estimate
• 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]
MEMO
COLORADO
D I V I S I ON O F
RECLAMATION
MINING
SAFETY
Bill Ritter, Jr.
Date: April 28, 2009 Governor
Harris D. Sherman
From: Tom Kaldenbach Executive Director
Ronald W. Cattany
Division Director
To: File Natural Resource Trustee
• West Elk Mine, Permit C-80-007
Midterm Permit Review 6 (MT-06)
Re: Reclamation Cost Estimate for West Elk's MT-06
As part of Midterm Permit Review 6, I have updated the reclamation cost estimate for the
West Elk Mine (the MT-6 estimate). Prior to MT-6, West Elk's reclamation cost estimate
had most recently been updated in Permit Renewal 5 (the RN-5 estimate), using 2006
costs in CIRCES. For the MT-6 estimate, all tasks were updated using the unit costs in
CIRCES as of early 2009, the most recent costs available.
The updated total for the estimate is $13,232,158, a decrease of $817,580 or 5.8%,
compared to the existing reclamation liability of $14,049,738. (This existing reclamation
liability is based on the liability figure from October 9, 2008 prior to the approval of PR-
14 which added to the DRMS database future incremental bond liability of $1,465,738.
See discussion of "Removal of future bond increments from DRMS database", below.)
The main sources of the reduction in costs are shown in Table 1, below. The total cost
reductions of $1,047,627 shown in Table 1 is partially offset by new tasks and unit cost
increases since RN-5, resulting in the net decrease of $817,580. Table 2, below, shows
cost changes for the eight main types of equipment used in the reclamation cost estimate.
Changes in task numbers and task sheets
Tasks were re-numbered in the MT-6 estimate, compared to the RN-5 estimate, in order
to group tasks by geographic area, eliminate unused task numbers, and for listing tasks in
an order nearer the likely chronological sequence of reclamation activities. Former task
numbers (from the RN-5 estimate) and new task numbers (created for the MT-6 estimate)
are cross-referenced in the MT-6 Cost Summary sheet. The percentage of liability that is
remaining for each task as a result of bond release is accounted for in the MT-6 Cost
Summary sheet and Demolition sheets.
Office of Office of
Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines