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through a decrease in demolition costs. Attached is the Midterm review cost <br />estimate and spreadsheet with the associated cost differences between the 2012 <br />Midterm Review and the 2009 Permit Renewal. Please provide an update to page <br />V -66 to reflect the new proposed permit term and the new bond calculation. <br />Rule 4.05.6 <br />Please submit a revised page V -6 with a corrected Table V -2 reflecting the B- <br />Seam Dewatering System's Location Drawing and Detail Drawing as Map 157. <br />Currently, Table V -2 lists the B -Seam Dewatering System as Map 156. <br />Section VI <br />Bonding <br />A compiled reclamation cost estimate was developed by the Division as a part of the <br />Permit Renewal No. 5 process on February 6, 2009. The Division's reclamation costs <br />have been updated since that date. A summary of those costs in addition to any <br />revision adjustments has been completed for this 2012 Midterm Review. As of April 13, <br />2012, the Division estimates liability at the Deserado Mine is $5,424,329.88. This <br />amount is sufficient to assure completion of the remaining reclamation work at the site if <br />the work had to be performed by the Division, including the cost of re- establishing <br />vegetation on any revegetated areas, should those areas fail. The permittee currently <br />has on deposit with the Division one Travelers Casualty and Surety Company of <br />America bond in the amount of $5,703,525.00. <br />Based on the updated costs of associated revisions the direct costs for all reclamation <br />tasks is $4,318,351.29. This is less that the direct costs of $4,466,817.00, calculated for <br />Permit Renewal No. 5. Indirect costs consist of the Overhead and Profit costs and the <br />Legal, Engineering, and Project Management costs. Overhead and Profit costs consist <br />of Liability Insurance (% of direct cost), Performance Bond (% of direct cost), Job <br />Superintendent (hourly), and Profit (% of direct cost) which make up the Contract <br />Amount (direct cost + Overhead and Profit). The Legal, Engineering, and Project <br />Management Costs consist of Engineering Work (% of contract amount), and <br />Reclamation Management (% of contract amount) for a Total Indirect Cost. Based on <br />the updated costs for all reclamation tasks, the indirect costs for the 2012 Midterm <br />Review is $1,105,978.59. This is less than the indirect costs of $1,160,934.00, <br />calculated for Permit Renewal No. 5. <br />This concludes the mid -term review process. <br />10 <br />