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• 2.0 Approach and Rationale <br />• <br />2.1 DMG's First Workbook M493 -4.WKB <br />DMG's Workbook M493 -4 in Lotus 123 format was converted to a Microsoft Excel <br />Worksheet. The first two pages of the Excel Worksheet deal with structures in the Storke <br />Area, most of which have been demolished and reclaimed. The revised Excel <br />Worksheets (demo- costs- 10 -6 -97) show all the DMG's column headings except for the <br />"Means site location adjustment factor." Also, on the first two sheets (dealing with the <br />Storke Area) two comparison columns were added at the end: (1) Climax Estimated / <br />Actual Cost and (2) Comment. For the twelve remaining sheets of M493 -4 all the DMG <br />information was used except for the "Means site location adjustment factor" and two new <br />columns were added: (1) Projected Unit Costs, based on actual bids and field experience; <br />and (2) Climax Estimated / Actual Cost. which is a total cost derived from the DMG's <br />volume determination times the Projected Unit Costs. <br />The complete 14 page revised Excel Workbook ( "demo- costs- 10- 6 -97 ") is attached to <br />this report as Table 1 - "Table of Cost Comparisons Using DMG's Estimating Method <br />Versus Actual Mine Demolition Costs." <br />Also attached to this report as appendices are three cost summary tables which contain <br />• real -life cost numbers used in developing the revision to DMG's M- 493- 4.WKB: <br />• Appendix A: Contractor Demolition Bids for Climax Storke Area <br />• Appendix B: Crystal Hill Mine Demolition Volumes and Costs (Actual) <br />• Appendix C: Horizon Mine Demolition Volumes and Costs (Actual) <br />A review of these appendices indicates a demolition cost between $0.0257 and $0.13 per <br />cubic foot for a wide range of buildings, foundation types, construction materials, etc. <br />Both Crystal Hill and Horizon costs were considerably lower (Crystal Hill's = $0.0257 <br />and Horizon's = $0.056) than the $0.13 / cubic foot selected for use in the revised Climax <br />Mine calculations. None of these numbers include any salvage credit, which in the case <br />of the Horizon facility amounted to over 4000 tons of recyclable steel, valued at the time <br />at $80 per ton. <br />It should be noted that for most Climax facilities there is no reason to separate out the <br />demolition of floors, footings, or other foundations from the demolition of walls, supports <br />and roof. Based on the demolition projects at the Storke Area, Crystal Hill, and Horizon, <br />the cost per cubic foot for demolition included burial of foundations in place and no <br />extra charge was added for tearing out concrete. Covering the "mounded" rubble is a <br />separate item, however, and is usually bid on a cost per cubic yard basis, depending on <br />haul distance, type of cover material, whether or not compaction is required, etc. Perhaps <br />DMG has assumed that all foundations will have to be dug up, crushed, and then pushed <br />back into the hole in order to achieve the desired reclamation, but EEE's experience is <br />