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y. <br />STATE OF COLORADO <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 />DIVISION Of <br />RECLAMATION <br />MINING <br />SAFETY <br />INTEROFFICE Bill Ritter, Jr <br />Governor <br />MEMORANDUM Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />TO: Joe Dudash Division Director <br />Natural Resource Trustee <br />FROM: Jim Stark <br />SUBJECT: Bowie No. 2 Mine's 2009 Midterm Cost Estimate <br />- Answers to Jim Stover's Questions <br />DATE: 26 January 2010 <br />I have reviewed Jim Stover's questions regarding the 2009 Midterm Review reclamation <br />cost estimate for the Bowie No. 2 Mine. The short answer is that the Division agrees <br />with both of his questions (more details will follow). The estimate has been corrected <br />and several pages will need to be replaced. The replacement pages are the cost summary <br />(2 pages) and tasks 00a, 00k, 015 and 165 (12 pages). The new liability for the Bowie <br />No. 2 Mine is $8,706,741.00. This is a decrease of $311,662.00 from the previously <br />calculated 2009 Midterm estimate (of $9,018,403.00). <br />The first question Stover had was related to the calculation of structural demolition costs <br />for task 165. Stover was correct that several of the line items were incorrectly calculated. <br />The entire sheet was checked and no other errors (besides those pointed out) were found. <br />The new cost for structural demolition task 165 is $1,495,185.00. This is a decrease of <br />$188,089.00 from the previous structural demolition task sheet (old cost of <br />$1,683,274.00). <br />The second question Stover had dealt with the backfilling volumes for the B-Seam Portal <br />Bench. He correctly stated that the volume for task 015 was overstated by 55,000 cubic <br />yards (87,000 cubic yards in the original estimate vs. 32,000 cubic yards in the corrected <br />estimate). The new cost for task 015 is $39,749.00. This is a decrease of $68,317.00 <br />from the previous task 015 (old cost of $108,066.00). <br />The remaining cost decreases not accounted for at the task level above were due to the <br />decrease in the indirect costs. Please let me know if you have any questions or need any <br />additional information. <br />cc: Sandy Brown w/out Attachments <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines