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<br />DIVISION OF RECLAMATION, MINING AND SAFETY
<br />Department of Natural Resources
<br />1313 Sherman St., Room 215
<br />Denver, Colorado 80203
<br />Phone: (303) 866-3567
<br />FAX: (303) 832-8106
<br />COLORADO
<br />D I V1 S I ON OF
<br />RECLAMATION
<br />MINING
<br />SAFETY
<br /> Bill Ritter, Jr.
<br />INTEROFFICE Governor
<br />
<br />MEMORANDUM Harris D. Sherman
<br />E
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<br />rector
<br /> Ronald W. Cattany
<br />
<br />TO: Joe Dudash Division Director
<br /> Natural Resource Trustee
<br />FROM: Jim Stark
<br />SUBJECT: Bowie No. 2 Mine's Revised 2009 Midterm Cost Estimate
<br />DATE: 3 November 2009
<br />Attached is the revised reclamation cost estimate for the Bowie No. 2 Mine's 2009
<br />Midterm Review. The estimate is 134 tasks (a summary sheet and tasks 00a-184) and
<br />represents a new liability of $9,018,403.00. This new liability is $229,748.00 more than
<br />the current liability (of $8,788,655.00) and $207,133.00 more than the current bond held
<br />(of $8,811,270.00). Based on the review of the reclamation cost estimate in conjunction
<br />with the 2009 Midterm Review, BRL will need to submit an additional $207,133.00 in
<br />bond monies. Please note that the attached estimate, dated 3 November 2009, replaces
<br />the old estimate, dated 1 October 2009, in its entirety.
<br />The calculation of the new liability was an update of costs from previously completed
<br />estimates that have been approved since RN-02 was approved. These estimates include
<br />Permit Renewal 02,15 Minor Revisions (MR-72, MR-75, MR-78, MR-82, MR-86, MR-
<br />87, MR-88, MR-92, MR-97, MR-100, MR-102, MR-104, MR-105, MR-106 and MR-
<br />107) and 10 Technical Revisions (TR-44, TR-45, TR-47, TR-48, TR-49, TR-50, TR-52,
<br />TR-53, TR-60 and TR-62). This estimate does not include any possible costs from TR-
<br />64, which is still in the review process.
<br />The reason for the increase in liability is a general increase in costs over the past few
<br />years. These cost increases include equipment costs, mine and borehole sealing costs,
<br />seed and reseeding costs and demolition costs (although these increases were mostly
<br />offset by comparable decreases). In this revised estimate the fuel costs have decreased
<br />substantially from the original estimate, dated 1 October 2009. Equipment costs, in
<br />general, have increased, leading to the current increase in liability.
<br />The Division did change the size of the dozer used for many of the reclamation tasks at
<br />the site from a D9R to a larger D10R, which made the net liability increase less than it
<br />would have been had the Division not switched the dozer size. This change made sense
<br />STATE OF COLORADO m-r-
<br />Office of Office of
<br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines
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