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Financial Warranty Reduction 1 February, 2002 <br />Permit M- 1977 -300 Page 4 of 4 <br />Recalculation of Permit M -1977 -300 Financial Warranty Requirement After Reduction: <br />Current Financial Warranty Direct Costs for Permit M- 1977 -300: <br />The current total direct reclamation costs (calculated August 1996) for Permit M- 1977 -300 are: <br />$746,206.00 <br />Remaining Direct Reclamation Costs for Permit M- 1977 -300: <br />The direct reclamation costs remaining after the deduction of $455,115.00 for completed or <br />eliminated work under the current approved reclamation plan for Permit M- 1977 -300 are: <br />$291,091.00 <br />Recalculated Indirect Costs for Permit M- 1977 -300: <br />The reduction in direct costs detailed above requires a recalculation and reduction in the <br />indirect costs associated with the financial warranty for Permit M- 1977 -300. These indirect <br />costs have been calculated using the Division guidelines established in the 1996 financial <br />warranty recalculation. <br />1. Contractor's Overhead and Profit: <br />a. Public Liability Insurance 1.550% of Direct Costs, or $ 4,512.00 <br />b. Contractor's Performance Bond 0.975% of Direct Costs, or $ 2,838.00 <br />c. Contractor's Profit 10.000% of Direct Costs, or $ 29,109.00 <br />Subtotal (1) $ 36,459.00 <br />Total Construction Contract Amount (Direct Costs plus Contractor's O &P): $327,550.00 <br />2. DMG Project Administration Expenses: <br />a. Minerals Program Administration... 5.000% of Contract, or $ 16,378.00 <br />Total Recalculated Financial Warranty Amount for Permit M- 1977 -300: $343,928.00 <br />A copy of the request to the Division to reduce the financial warranty will be sent to the <br />landowner and Jefferson County in accordance with Rule 4.16(2)(a). Please note that Cotter <br />is the landowner of record. <br />If you have any questions, or require additional information on the contents of this report, <br />please call Timothy Pierce or Tom Buchholz at (303) 642 -3893. <br />Sincerely, " <br />w . Ze "-rte <br />Timothy . Pierce <br />EC /RSO - Schwartzwalder Mine <br />cc: Tom Buchholz, General Mine Manager <br />Jerry Powers, Manager of Administration <br />