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The line item "engineering work and/or contract/bid preparation" is a cost associated with <br />changes to the reclamation plan (based on unknown items such as not completing a mine <br />plan or on the ground conditions are not what was initially permitted), surveying to <br />determine actual volumes, etc. that are required prior to putting a reclamation project out <br />to bid. This line item also includes staff time to prepare the bid document(s) for the <br />reclamation project. The percentage rate for the engineering line item was derived from <br />Means (Section 01 11 31.30 0010) and represents a fixed value of 4.25% of the contract. <br />This value is an average of the listed minimum and maximum values for engineering <br />work. The Division calculates this percentage based on the contract amount (direct <br />reclamation costs plus the fixed contractor costs listed above). The Division follows the <br />Means method for applying this item, as the guide states that this amount should be based <br />on the cost of the entire contract. During the conference call Jerry mentioned a process <br />called design/build, where one company is given a project to design and then build, all in- <br />house. While this is a good process for some work, such as building an office building, it <br />is not a process that would be feasible for a large reclamation project. These projects are <br />complex and often broken down into smaller reclamation projects to be completed over <br />several years, where each part of the project is bid out separately. <br />The line item "reclamation management and/or administration" is a cost associated with <br />the required inspections and oversight during the work on a project as well as the <br />required monthly inspections following a projects completion (until the Division's <br />termination of jurisdiction, which is a minimum of 10 years after project completion). <br />The percentage rate for the administration line item was derived from Means (Section 01 <br />11 31.20 0010) and represents a fixed value of either 3.25% or 6.0 %, depending on the <br />size of the contract, and is applied to the contract amount (direct reclamation costs plus <br />the fixed contractor costs listed above). These values are the respective averages of the <br />minimum and maximum administrative expense values listed in Means. As with the <br />engineering line item above, the Division follows the Means method for applying this <br />item, as the guide states that this amount should be based on the cost of the entire project. <br />The statutory requirement for adding the engineering and administrative line items is <br />found in the Colorado Surface Coal Mining Reclamation Act, Section 34- 33- 113(1) and <br />Rule 3.02.2(2), promulgated there under, which states: "In order to assure sufficiency, the <br />amount shall be based on, but not be limited to: (a) The estimated costs submitted by <br />the applicant in accordance with 2.05.4. (b) The additional estimated costs to the Board <br />which may arise from applicable public contracting requirements or the need to bring <br />personnel and equipment to the permit area after its abandonment by the permittee to <br />complete the reclamation plan. (c) All additional estimated costs necessary, expedient, <br />and incident to the satisfactory completion of the requirements identified in 3.02. (d) <br />Such other cost information as may be required by or available to the Division." <br />Pursuant to Rule 3.02.2(2), the Division has determined that engineering and <br />administrative fees are a necessary cost to ensure the proper reclamation of a site. <br />The Division has used the definition of "project amount" and "contract amount" to mean <br />the amount that it would cost a contractor to complete reclamation of a mine site. This <br />amount necessarily includes the additional costs for public liability insurance, a <br />