2012-06-18_REVISION - C1992081

• Permit No: C1992081
• IBM Index Class Name: Revision
• Doc Date: 6/18/2012
• Doc Name: Adequacy Review Letter & Cost Estimate
• From: DRMS
• To: Roy Karo
• Type & Sequence: SL1
• Email Name: JLE
• Email Name: SB1
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
18 June 2012
Mr. Roy Karo
37796 Routt County Road 53
P.O. Box 670
Hayden, CO 81639
RE: Hayden Gulch Loadout; C- 1992 -081
Phase I Bond Release (SL1) Adequacy Review
Dear, Mr. Karo,
COLORADO
ID IV I S I O N O F
RECLAMATION
MINING
SAFETY
John W. Hickenlooper
Governor
Mike King
Executive Director
Loretta Pineda
Director
The Division received a Phase I bond release application (SL1) on February 2, 2012. The release
request was called complete for review on March 12, 2012. The Division conducted an inspection of the
site to evaluate the bond release request on June 5, 2012. During the inspection the Division evaluated
the reclamation tasks completed within the bond release area (See June 5, 2012 inspection for details).
The current decision date for the release is August 4, 2012.
The Division currently holds a financial warranty in the amount of $1,557,769.56. The amount of bond
requested for release is $488,408.00. The Division revaluated the current approved cost estimate from the
Midterm Review No. 4 (MT4, July 20 10) and Permit Revision No. 1 (PR1; September 16, 2011). The
Division removed and updated the reclamation tasks to account for the reclamation completed in
association with SL1. Based on the work completed and the current cost to reclaim the site, the Division
found the amount of bond necessary to reclaim the site to be $1,204,014.63. This is a reduction of
$353,754.93. A discussion of the updated cost estimate is below.
For the Tie Across Haul Road (TAHR) and the remaining Loudout area reclamation, the
Division updated the cost estimate using consistent equipment types for similar tasks to
minimize the number and types of equipment pieces to be mobilized and demobilized. For
example, instead of using a D9 dozer as originally used in the current estimate for the Loudout
area, the Division used a D 10 dozer cited to be used for the TAHR reclamation. It appears the
overall cost of earthmoving activities has increased since the last cost estimate; however, the
Division found it to be more economical both financially and temporally to use the same type of
equipment for the TAHR and the Loadout area reclamation.
2. The SL1 application requested to release the bond and tasks associated with ripping and re-
grading the facilities area (Task 003 and 006). These tasks appear to include the office /parking
lot area described in Tab 12, page 4 of the permit. About 11.9 acres have been backfilled and
graded at the site not including the office /parking lot area. The acreage associated with the
facilities area is 13.5 acres according to the MT4 estimate for Task 006 for ripping this area. The
Division must retain the cost to rip and re -grade the remaining 1.6 acres associated with the
facilities area.
Office of Office of
Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines