2011-08-23_REVISION - M1999006 ‎(3)‎

• Permit No: M1999006
• IBM Index Class Name: REVISION
• Doc Date: 8/23/2011
• Doc Name: FW Calculation
• From: DRMS
• To: Varra Companies, Inc.
• Type & Sequence: TR3
• Email Name: MAC
• 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 23, 2011
Garrett Varra
Varra Companies, Inc.
8120 Gage St.
Frederick, CO 80516
RE: Kurtz Resource Recovery & Land Development Project; DRMS File No. M- 1999 -006;
Technical Revision No. 3 — Financial Warranty Calculation
Dear Mr. Varra,
The Division of Reclamation, Mining and Safety (Division) has completed its review of Technical
Revision No. 3 (TR03) which updated the Mining and Reclamation Plan to account for extraction within
Tract C. The financial warranty estimate (copy enclosed) has been revised to reflect the proposed
changes. The additional costs associated with mining of Tract C included the following:
1) Pumping costs for dewatering the full volume of Tract C.
2) Replacing topsoil on the portions of Tract C which will remain above the static water level.
3) Seeding the portions of Tract C which will remain above the static water level.
The grading costs of Tract C have been offset by grading work in Tract A, as observed during the
inspection conducted on July 6, 2011, and therefore have not been included in the revised cost estimate.
The Operator should note that the Division was unable to calculate pumping costs based on the type of
pump which was specified to be used under TR03. In order to calculate pumping costs using a specific
pump, the Operator would need to demonstrate to the Division that the specified pump would be available
for use in the event of permit revocation and bond forfeiture. In addition, the Operator would need to
supply the Division with a cost estimate to replace the pump as well as electrical costs to operate the
pump. In absence of this information, the Division calculated the pumping costs using our internal cost
estimating software.
Please review the financial warranty cost estimate for accuracy and notify the Division of any errors or
omissions. If you have any questions, you may contact me at (303)866 -3567 x8116.
Sincerely,
Abb
Michael A. - Cuntrin g ham
Environmental Protection Specialist
Enclosure: Financial Warranty Calculation
CC: Brad Janes, Varra Companies, Inc.
Office of Office of
Denver • Grand Junction • Durango Active and inactive Mines
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