2011-02-22_REVISION - C1991078

• Permit No: C1991078
• IBM Index Class Name: REVISION
• Doc Date: 2/22/2011
• Doc Name: Cost Estimate ‎(Memo)‎
• From: Jim Stark
• To: Marcia Talvitie
• Type & Sequence: SL2
• Email Name: MLT
• Email Name: JRS
• Email Name: SB1
• 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]
COLORADO
D IV IS I ON OF
RECLAMATION
MINING
SAFETY
INTEROFFICE John Hickenlooper
Governor
MEMORANDUM Mike Kin
Executive Director
Loretta E. Pineda
TO: Marcia Talvitie Director
FROM: Jim Stark
SUBJECT: Hamilton Mine SL-02 Cost Estimate
DATE: 22 February 2011
As requested, I have completed the reclamation cost estimate for the Hamilton Mine's
Phase II Bond Release SL-02 (attached). The estimate is six tasks (a summary sheet and
tasks 040-046) and represents a new liability of $55,226.00. The estimate includes costs
for reseeding for vegetation failures, site maintenance, weed spraying, well sealing,
equipment mobilization and all of the associated indirect costs.
The current liability at the Hamilton Mine is $439,432.00, as calculated with the 2009
Midterm Review (MT-04). The Division currently holds a bond in the amount of
$447,281.00 (Letter of Credit 01812016 from US Bank National Association). Pursuant
to Rule 3.03.1(2)(b), "(u)p to eighty-five percent of the applicable bond amount shall be
released upon the establishment of vegetation which supports the approved postmining
land use and which meets the approved success standard for cover..." Pursuant to Rule
3.03.1(2)(b), the Division can release up to 85% of the current liability ($439,432.00),
which is $373,517.00.
Additionally, pursuant to Rule 3.02.2(4), which states that "(t)he amount of the
performance bond required shall be adjusted for good cause as affected land acreages are
increased or decreased or when the cost of future reclamation changes...", the Division
can approve a bond adjustment in the amount of $7,849.00. This bond adjustment is
based on the difference between the current bond held ($447,281.00) and the current
liability as calculated with MT-04 ($439,432.00).
The bond release amount ($373,517.00) and the bond reduction amount ($7,849.00) give
a maximum releasable amount of $381,336.00 for SL-02. The required liability
following the approval of SL-02, pursuant to Rule 3.03.1(2)(b), is 15% of the current
liability ($439,432.00), which is $65,915.00. Based on the Division's calculation of the
remaining liability following the approval of SL-02 ($55,226.00), the Division can
release the full amount of $381,366.00. Although the Division will hold more bond
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