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MID-CONTINENT RESOURCES.INC. <br /> 201 Centennial St_Suite 406 <br /> Glemtirood Spring& Colorado 81601 <br /> (303)940-4958 <br /> June 30, 1986 <br /> Ms. Candace Thompson <br /> Mined Land Reclamation Division <br /> 423 Centennial Building <br /> 1313 Sherman Street <br /> Denver, CO 80203 <br /> RE: Estimated Reclamation Costs - Coal Basin Mines <br /> Dear Candace: <br /> This is in reply to Section 5 - Bonding, of your March 18, <br /> 1986 Mid-Term Review letter which required Mid-Continent to <br /> examine the MLRD figures, provide evidence of lower costs where <br /> possible, and revise the bond as necessary. <br /> In reviewing the estimations of reclamation costs of the <br /> Coal Basin mining complex developed over the past several years <br /> by Mid-Continent and MLRD it becomes quite clear that those <br /> efforts have been based, in several instances, on incorrect or <br /> unsupportable assumptions. No one has taken the time to clearly <br /> determine just what should be, or must be done to accomplish <br /> adequate and reasonable reclamation of Coal Basin following the <br /> cessation of mining operations. <br /> The areas that need to be addressed, and policies established, <br /> before valid reclamation costs can be calculated are as follows: <br /> 1. Verification of total number of disturbed acres. <br /> 2 . Application of the Approximate Original Contour (AOC) <br /> restoration requirement to the Coal Basin terrain. <br /> 3. Salvage value of structure materials. <br /> 4 . Revegetation costs in Coal Basin based on experience <br /> factors. <br /> 5. Degree of reclamation required for the coal rail <br /> loadout facility. <br /> 6 . Basis and authority for including indirect reclamation <br /> costs. <br />