2011-08-11_REVISION - C1981033

• Permit No: C1981033
• IBM Index Class Name: REVISION
• Doc Date: 8/11/2011
• Doc Name: Letter Regarding Revised Reclamation Cost Estimate
• From: DRMS
• To: Bear Coal Company
• Type & Sequence: SL4
• Email Name: JJD
• Email Name: SB1
• Media Type: D
• Archive: No

DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
August 11, 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
Revised Reclamation Cost Estimate
Dear Mr. Bear:
Office of
Mined Land Reclamation
STATE OF COLORADO
COLORADO
D I V I S I O N O F
RECLAMATION
MINING
—&—
SAFETY
John W. Hickenlooper
Governor
Mike King
Executive Director
Loretta E. Pineda
Director
This letter is to inform you that the Colorado Division of Reclamation, Mining and Safety (Division) is
proposing to increase the reclamation bond liability for the Bear No. 3 Mine. The Division is required,
under Rule 3.02.2(4), to adjust the reclamation bond liability amount whenever the costs for future
reclamation change. The Division is also required, under Rules 3.02.2(4)(a) and (c), to inform the
permittee of the proposed reclamation bond liability adjustment and provide an opportunity for the
permittee to request an informal conference and/or a formal hearing concerning the proposed
adjustment.
When the reclamation cost estimate for the Bear No. 3 Mine had been calculated for the Phase One
Bond Release (SL -4), the Division's old CIRCES reclamation cost estimating program with old unit
costs had been used. The Division has recalculated the reclamation cost estimate using the Division's
new CIRCES cost estimating program with updated unit costs.
Attached is a copy of the Division's updated reclamation cost estimate for the Bear No. 3 Mine. The
new estimate is $146,617.66. This represents an increase of $16,226.66 over the cost estimate of
$130,391.00 for SL -4 and is due solely to an increase in unit costs.
The Division requests that Bear Coal Company review the attached reclamation cost estimate
worksheets and inform the Division in writing whether or not the new estimate is acceptable. The
Division also requests that Bear Coal Company inform the Division in writing whether or not an
informal conference and /or a formal hearing are requested concerning this bond liability adjustment.
If the Division issues a written proposed decision to adjust the reclamation bond liability amount, the
Division is required, under Rule 3.02.2(4)(b), to publish the notice of the proposed decision and notify
the permittee, surety and any property owner who requested such notification of the proposed bond
Office of
Denver • Grand Junction • Durango Active and Inactive Mines