1986-11-28_GENERAL DOCUMENTS - C1981017

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Ajs. Candace Thompson November 26 , 1986 Page - 9 Loadout Area. Mid-Continent has reassessed the plans for converting the Goal storage building to a general warehouse and considers that a gravel floor Will be adequate. Summary. In the course of these reclamation cost calculation proceedings over the past six months or so we have attempted to organize the reclamation activities in an understandable manner, include many activities that hadn't been considered previously, and prepare sound and reasonable costs to accomplish the various activities . We believe that it is time to quit the nit-picking and agree on a bottom line figure that will reasonably accomplish the task. Our September 16 calculations added up to $1, 705, 100. Recent technical review approvals will add another $71, 356 (Rock tunnel expansion, two additional mine water discharge ponds and revegetating mine pad downslopes) to that total. Adjustments in this letter increase the cost estimates an additional $119 ,692. We are also agreeable to a 20% indirect cost amount. This will bring the total to $2 , 275, 379 . In order to account for our differences of opinion on such items as the correction factors that should be applied to equipment production amounts, exact revegetation costs and exact volumes of backfilling materials we will offer to add $200, 000 for unforeseen contingencies . This would bring the bottom line figure up to $2 , 475, 379 . If this offer is acceptable to MLRD, I will update my previous calculations, as well as the summary sheets of estimated costs broken out by both major activities and specific areas with a bottom line of $2, 475 , 379 and submit it for inclusion in Appendix V-D-1 of the permit application. As you are aware, MLRD holds deeds of trust for a total bond amount of $2 , 663 , 748 . Please give me a call if you have any questions on anything in this letter. Sincerely, MID-CONTINENT RESOURCES , INC. By e�_ 62f4k1_1 George E . Wear GEW/lta