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Peabody Sage Creek Mine: application Reclamation Cost Estimate April 29, 2010 <br />Task 50 was recalculated to remove the weed control costs, and although no fertilizer was included in the task, the <br />form had erroneously retained costs associated with fertilizer application. The fertilizer spreader costs were removed <br />in the revised task 50. <br />Task 46, The Division will retain this task due to commitments in the permit application, page 2.05-26 and 2.05-37 <br />(revised date 12/17/2009), that states "roads to be removed and reclaimed" will be ripped. <br />Task 86 and Task 88, during review of the post-mining drainage maps and the Seneca I I S L3 bond release estimate, I <br />was under the impression that the remaining cost for establishment of PM Drainage Channel 12A would be <br />transferred into the Peabody Sage Creek Mine permit. Consultation with Division of Reclamation, Mining and Safety <br />staff that had conducted the Seneca II RC E confirmed that PM Drainage 12A was associated with the remaining <br />Seneca I I permit. These two tasks, 86 and 88, have been removed from the Peabody Sage Creek Mine RC E. <br />Task 81, due to the general description and lack of detail in the PAP regarding reclamation timing, I conducted the <br />calculation of reclamation of LCSS and UCSS assuming thatthey would remain after initial backfill and regrading of <br />the facilities area, and removed after vegetation had begun to establish on the reclaimed areas. This is a practice the <br />Division has observed on other reclaimed mine sites. Retention of sumps within the drainage system until vegetation <br />becomes established assists with sediment control in the early stages of reclamation, and minimizes annual <br />maintenance costs. Clean out of sediment prior to regrading of the sumps would be necessary. The portal face-up <br />would already be backfilled regraded, topsoiled and seeded in this scenario. If PSCM prefers to dispose of sump <br />cleanings elsewhere, the appropriate pages of the PAP will need to be revised to include this detail. Otherwise, the <br />Division assumes this sediment would be hauled to the refuse pile at the Foidel Creek Mine. <br />Reclamation Management percentage: Indirect costs. This percentage is determined by the size of the contract. On <br />contracts totaling less than $5,000,000.00, this cost is calculated at 6.00% of the contract cost. On contracts greater <br />than $5,000,000.00, this cost is calculated at 3.50%. This is a Division Policy, based upon information described in <br />the RS Means Site Work and Landscape Cost Data handbook. The Peabody Sage Creek Mine RCE contract is <br />estimated to exceed $5,000,000.00, so 3.25% of the contract value will be used to calculate the reclamation <br />management and administration cost. <br />The revised Reclamation Cost Estimate for the Peabody Sage Creek Mine is $5,466,264.00