2011-11-22_REVISION - C1981008 - Laserfiche WebLink

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November 21, 2011 To: Marcia Talvitie From: Susan Burgmaier Re: New Horizon Mine (Permit No, C- 19$1 -00$) Phase 11 /111 Bond Release Request (SL -12) have completed a revised cost estimate for remaining reclamation liability following the proposed Phase Ill Bond Release (SL -12) at the New Horizon Mine. After the proposed release with SL -12, the estimated cost for reclamation is $5,011,929.00. Since the reclamation cost had not been calculated since June of 2009, 1 updated the entire reclamation cost estimate. Although Western Fuels- Colorado (WFC) requested both Phase II and Phase III bond release, it is my understanding that the Division will only be approving Phase III release on 99.24 acres of irrigated pasture in the southeastern portion of the permit area (parcels owned by San Miguel Power Association, Goforth, Benson, and Moore). This cost estimate is based on the proposed Phase III release of 99.24 acres. Aside from the typical increases in equipment operating costs, there were a few major changes to the estimated reclamation costs. Specifically • Earthmoving costs increased substantially, since the pit is now at maximum length for the permit term. • Topsoil redistribution costs decreased as a result of a change in the scraper model that the estimate is based on. • Revegetation costs rose due to modifications to the revegetation plan and postmining land uses approved in PR6. • Irrigation costs were reduced since the area to be irrigated was reduced with PR6, and also with the release of 99.24 acres of irrigated pasture proposed in SL12. Prior to this bond "release, the estimated reclamation cost for the entire site was $5;042,302.00; the current estimate with SL12 is $5,011,929.00; so 1 would propose a maximum release amount of $30,373.00. The revised reclamation cost estimate packet is attached. Should you or the operator have questions or need additional information, please let me know. cc: Sandy Brown, w /out enclosure 1