2011-03-09_REVISION - C1981033

• Permit No: C1981033
• IBM Index Class Name: REVISION
• Doc Date: 3/9/2011
• Doc Name: Review Letter & Reclamation Cost Estimate
• From: DRMS
• To: Bear Coal Company
• Type & Sequence: SL4
• Email Name: JJD
• 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]
March 9, 2011
Mr. Daniel Bear
Bear Coal Company
1326 War Emblem Lane
Rock Springs, Wyoming
82901-7713
RE: Bear No. 3 Mine, Permit No. C-1981-033, Bear Coal Company
Partial Phase I Bond Release, SL-4, Reclamation Cost Estimate
Dear Mr. Bear:
COLORADO
D IV IS I ON OF
RECLAMATION
MINING
SAFETY
Bill Ritter, Jr.
Governor
Mike King
Executive Director
Loretta E. Pineda
Director
The Colorado Division of Reclamation, Mining and Safety (Division) has finished its review of the
reclamation cost estimate for the Partial Phase I Bond Release (SL-4) for the Bear No. 3 Mine.
The Division estimates that $148,833.00 out of a total liability of $279,224.00 can be released for SL-4,
leaving a remaining liability of $130,391.00. The Division has calculated that the remaining liability will
be sufficient to cover the costs of the reclamation work that still needs to be done at the site. Attached is
the Division's reclamation cost estimate, which includes the cost summary form and the individual task
worksheets.
Also attached is a table which includes each of the original reclamation tasks from the currently approved
reclamation cost estimate from 2007, the amount requested for release by the Bear Coal Company, and
the Division's estimate of the amount that could be released if SL-4 was approved. The figures shown in
parenthesis are negative dollar release amounts for tasks that have increased in cost since the last
estimate. Increases are primarily due to rising labor, equipment, and materials costs.
Tasks with proposed release amounts less than those proposed by the operator:
Task 2: Bear Coal Company estimated that 44% of the original area would not be eligible for
release. This area appears to be an accurate acreage figure, but didn't apply to the volume of
material to be moved. The Division estimated that 49% of the material that had been regraded
was not included in the Phase I bond release request area. The volume figure used in the task
reflects 49% of the original estimated volume.
Task 9: The operator's request was based on all three portal seals meeting Phase I release
standards. However, because the sealed and backfilled main entry and beltline entry area
continues to exhibit slope instability, release would only be possible on the reclaimed ventilation
entry. Costs to seal the main entry and beltline entry have been retained, and those costs have
increased due to rising costs for labor, equipment, and materials.
Tasks 7b, 11, 12, 13 and 17: Costs have increased due to rising costs for labor and materials.
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Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines