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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 />D I V I S I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br /> Bill Ritter, Jr. <br />INTEROFFICE Governor <br />MEMORANDUM 'aces Martin <br /> Executive Director <br />TO: Sandy Brown, Dan Mathews <br />FROM: Jim Stark <br />SUBJECT: Seneca II-W Mine's SL-02 Cost Estimate <br />DATE: 15 March 2010 <br />Attached is the reclamation cost estimate for the Seneca II-W Mine's Partial Phase I <br />Bond Release SL-02. The estimate is 101 tasks (a summary sheet and tasks 002-127) and <br />represents a new liability of $8,945,917.00. This estimated liability is based on the work <br />remaining following the release of liability associated with SL-02. All costs have been <br />updated to current costs in this estimate. <br />The amount the Division can release as a result of SL-02 is $2,171,431.00. Based on the <br />current bond amount of $11,117,348.00, the Division will be releasing 19.53%. This <br />amount is lower than the $4,864,928.00 requested by SCC due to the South Exclusion <br />Area. This South Exclusion Area contained 43.5% of the area referred to as the South <br />Wadge Pit in the estimate as well as the Wolf Creek/Sage Creek Pit and the South Sage <br />Creek Pit, along with their associated drainage channels. <br />The areas that were included in this release estimate were the A Pit and the 56.5% of the <br />South Wadge Pit that was not in the South Exclusion Area. This release also included all <br />of the drainages in the release area that were not in the exclusion areas shown on the <br />Phase I Bond Release Exclusion Map. <br />Only costs associated with highwall reduction, backfilling and grading and drainage <br />control reestablishment were released. No costs for road reclamation, topsoil <br />replacement, pond removal, reseeding, maintenance or equipment mobilization were <br />released. <br />Please let me know if you have any questions or need any additional information. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines