2010-01-29_REVISION - C1981035 ‎(2)‎

• Permit No: C1981035
• IBM Index Class Name: REVISION
• Doc Date: 1/29/2010
• Doc Name: Updated Reclamation Cost Estimate ‎(Memo)‎
• From: Tom Kaldenbach
• To: File
• Type & Sequence: MT6
• Email Name: TAK
• 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
Date: January 29, 2010
From: Tom Kaldenbach III
To: File
King I and II Mines, Permit C-81-035
Midterm Permit Review 6 (MT-06)
Re: Reclamation Cost Estimate for King Mines MT-06
COLORADO
D I V I S I ON OF
RECLAMATION
MINING
SAFETY
Bill Ritter, Jr.
Governor
Harris D. Sherman
Executive Director
Ronald W. Cattany
Division Director
Natural Resource Trustee
As part of Midterm Permit Review 6, I have updated the reclamation cost estimate for the
King I and II Mines (the MT-6 estimate). Prior to MT-6, King Mines' reclamation cost
estimate had most recently been updated in Permit Renewal 5 (the RN-5 estimate), using
2006 costs in the Division reclamation cost estimating program, 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 $854,596, an increase of $448,345 or 110%,
compared to the existing reclamation liability of $406,251.
Major sources of increase in direct costs due to a change in the quantity or methods used
in a reclamation task are shown in Table 1, below. A major source of increase in indirect
cost was the Division's increase from 3.25% to 5.00% of overall costs for reclamation
and administration (see cost summary sheet).
Table 2, below, shows new tasks that were added in the MT-6 cost estimate. Table 3,
below, shows cost changes for the four main types of equipment used in the reclamation
cost estimate.
Some of the tasks were re-numbered in the MT-6 estimate, compared to the RN-5
estimate, in order to group tasks by geographic area and for listing tasks in an order
nearer the likely chronological sequence of reclamation activities.
cc: Dan Hernandez, DRMS
Office of Office of
Mined Land Reclamation Denver • Grand )unction • Durango Active and Inactive Mines