2008-02-22_REVISION - C1996083 (5)

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STATE OF COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY Department of Natural Resources 1313 Sherman St., Room 215 Denver, Colorado 80203 Phone: (303) 866-3567 FAX: (303) 832-8106 ED INTEROFFICE MEMORANDUM TO: Joe Dudash FROM: Jim Sta SUBJECT: Bowie No. 2 Mine's TR-52 Cost Estimate DATE: 22 February 2008 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 Attached is the reclamation cost estimate for the Bowie No. 2 Mine's Technical Revision 52 - the drilling of 13 gob vent boreholes. The estimate is nine tasks (a summary sheet and task 271-278) and represents an increase in liability of $273,624.00. The Division's estimate is approximately $75,000 more than the estimate submitted by BRL. The main reason for the higher Division estimate is the earthwork costs (dozer tasks 272-275). BRL estimates the earthwork costs at approximately $14,000.00, while the Division estimates the same cost at approximately $93,000.00. In their estimate, BRL uses a generalized cost of $90.00/hour for the equipment and a generalized time of 4 hours/pad for reclamation. The Division estimates the quantity of dirt moved and the variables (adjustment factors) that go into the tasks. Additionally, there does not appear to be a cost for topsoil replacement in the BRL estimate, which accounts for approximately $28,000.00 of the earthwork costs. This estimate also includes a credit for gob vent borehole GVB-6F, which was not drilled. This credit amounted to approximately $12,000.00. The credit is based on the estimated cost from Minor Revision 78. Please let me know if you have any questions or need any additional information. cc: Sandy Brown w/out attachments Office of Office of Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines