2011-11-21_REVISION - M1977300

• Permit No: M1977300
• IBM Index Class Name: REVISION
• Doc Date: 11/21/2011
• Doc Name: TR Approval
• From: DRMS
• To: Cotter Corporation
• Type & Sequence: TR18
• Email Name: TAK
• Email Name: AJW
• 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]
November 21, 2011
r. Randy Whicker
Cotter Corporation
P.O. Box 1750
Canon City, CO 81215
Re: Schwartzwalder Mine, Permit No. M -1977 -300, Technical Revision Approval, Revision No.
0 ,,TR -18
Dear Mr. Whicker:
On November 21, 2011 the Division of Reclamation, Mining and Safety approved the Technical Revision
application submitted to the Division on May 10, 2011, addressing the following:
Ralston Creek Diversion Structure, Phase 1
STATE OF COLORADO
The terms of the Technical Revision No. 18 approved by the Division are hereby incorporated into Permit
No. M- 1977 -300. All other conditions and requirements of Permit No. M -1977 -300 remain in full force and
effect.
The estimated liability amount of $3,015,698.33 exceeds the $1,228,884.50 performance bond currently
held. If you have not already done so, please submit additional bond in the amount of $1,786,813.83. The
revision will not be final until the bond is approved by the Division.
The attached reclamation cost estimate shows the estimated direct and indirect costs of construction and
demolition of the structures proposed in TR -18. The direct construction costs are based on values
provided by you, with a 93% location adjustment.
The Division adds indirect costs to the direct costs based on Rule 4.2.1(4) which says "The amount of the
Financial Warranty shall be sufficient to assure the completion of reclamation of affected lands if the
Office has to complete such reclamation due to forfeiture." Indirect costs include:
Office of
Mined Land Reclamation
• Contractor's overhead and profit (liability insurance, performance bond, job
superintendent costs and profit). Several of these items are spelled out and required by the
"General Bid Specifications" (IMP Specs), Colorado Inactive Mine Reclamation Program, dated
March 2009.
The first section of the IMP Specs, titled the "General Conditions of the Contract ", provides
requirements for all contractors bidding on Division reclamation contracts. Article 2, on page
GC -2, requires a "Performance and Payment Bond ". This Article states "(t)he CONTRACTOR
shall furnish a labor and material payment bond for 100 percent of the original contract price and
a performance bond for 100 percent of the original amount of the contract." The percentage rate
for the performance bond was derived from Means (Section 01 31 13.90 0010) and is set at
1.05% of the direct costs. Article 3, on page GC -2, requires "Insurance ". This Article states
C 0 L 0 RA D 0
D I V I S I O N O F
RECLAMATION
MINING
— &—
SAFETY
Office of
Denver • Grand Junction • Durango Active and Inactive Mines