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DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />STATE OF COLORADO <br />COLORADO <br />ID IV I S I O N O F <br />RECLAMATION <br />MINING <br />SAFETY <br />February 5, 2013 John W. Hickenlooper <br />Governor <br />Gorham Energy onsultants Mike King <br />gy Executive Director <br />12303 Airport Way, Suite 200 Loretta Broomfield, CO 80021 Director E. Pineda <br />Re: New Elk Mine, C1981012, Surety Increase No. 2. (SI2) <br />Dear Mr. Gorham: <br />The Division has reviewed Gorham Energy Consultant's (GEC) responses to the Division's <br />updated reclamation cost estimate for the New Elk Mine. Concerns noted in GEC's December <br />19, 2012 letter to the Division have been taken under consideration, as well as items we <br />discussed at a meeting with you on December 13, 2012. Please note that the Division conducted <br />an update of unit costs to the Division's CIRCES estimating program on December 18, 2012. <br />These updated costs are based on data provided to the Division through R.S. Means, Cost <br />Reference Guide, labor rates obtained from Colorado Department of Transportation, and actual <br />costs DRMS -AML contracted. The enclosed memo provides details regarding the Division's <br />review and responses to GEC's concerns. <br />In accordance with Rule 3.02.2(4)(a), the permittee may request an informal conference <br />regarding the updated Reclamation Cost Estimate for the New Elk Mine. <br />Sincerely, <br />Janet H. Binns <br />Environmental Protection Specialist III <br />cc: Ron Thompson, NECC <br />Leigh Simmons, DRMS <br />Attachments: Memo <br />Cost Estimate <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />