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SECTION VI - BONDING SUMMARY <br />A compiled reclamation cost estimate was developed by the Division as a part of the Permit <br />Renewal No. 5 process on May 14, 2010. The Division's reclamation costs have not been <br />updated since that date. However, a summary of those costs in addition to any revision <br />adjustments has been completed for this 2010 Midterm Review. As of November 3, 2010, the <br />Division estimates liability at the Foidel Creek Mine is $9,817,927.00. This amount is sufficient <br />to assure completion of the remaining reclamation work at the site if the work had to be <br />performed by the Division, including the cost of re-establishing vegetation on any revegetated <br />areas, should those areas fail. The permittee currently has on deposit with the Division one <br />Travelers Casualty and Surety Company of America bond in the amount of $9,323,701.00 and <br />one Federal Insurance Company bond in the amount of $439,388.00 for a total of $9,763,089.00. <br />Based on the updated costs of associated revisions the direct costs for all reclamation tasks is <br />$7,894,026.00. This is less that the direct costs of $7,924,449.2, calculated for Permit Renewal <br />No. 5. Indirect costs consist of the Overhead and Profit costs and the Legal, Engineering, and <br />Project Management costs. Overhead and Profit costs consist of Liability Insurance (% of direct <br />cost), Performance Bond (% of direct cost), Job Superintendent (hourly), and Profit (% of direct <br />cost) which make up the Contract Amount (direct cost + Overhead and Profit). The Legal, <br />Engineering, and Project Management Costs consist of Engineering Work (% of contract <br />amount), and Reclamation Management (% of contract amount) for a Total Indirect Cost. The <br />Division's Permit Renewal No. 5 reclamation cost estimate inadvertently estimated the Legal, <br />Engineering and Project Management costs as a percentage of Direct Costs rather than the <br />Contract Amount. <br />SECTION IV - MIDTERM ADEQUACY QUESTIONS <br />Pursuant to 2.08.3, the Division finds that the permit application C-1982-056 contains twenty- <br />four deficiencies following the review for the purpose of fulfilling the requirements of the <br />Colorado Surface Coal Mining Reclamation Act, and the Regulations of the Colorado Mined <br />Land Reclamation Board for Coal Mining. The Division requests that the permittee correct the <br />deficiencies by submission of revised permit pages under appropriate revision applications, or by <br />activities on the ground, by February 3, 2011. <br />Item 1: Rule 2.03.4(6). Page 2.03-14, the address for Camiletti and Sons has been changed. <br />Please ensure that the contact information for all land owners is current. <br />Item 2: Rule 2.03.5(3). Page 2.03-19.1 needs to be revised to change the date of the penalty <br />payment received for NOV CV-2008-006 from October 15, 2007 to February 11, 2009. <br />Also previous violations not received within the past three years may be deleted. <br />Item 3: Rule 2.04.3(4). Page 2.04-3 references Table 1 for statistics of cropland yields "for the <br />past nine years." However Table 1, revised with RN5 does not reflect the statistics given on Page <br />2.04-3. Please update the text to correspond with 't'able 1. <br />Foidel Creek Mine -5- 11/3/2010