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STATE OF COLORADO <br />• DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 DIVISION O F <br />Phone: (303) 866-3567 M I hl E RA L $ <br />fAX: (303) 832-St06 & <br />Memo GEOLOGY <br />RECLAMATION <br />TO: TORY WeIdCOn May 2$, 2002 MINING • S A F E T Y <br />Bill Owens <br />From: AI Amundson ~~~/~2R~%~~' / Governor <br />~~ ~ Greg E. Walther <br />Subject: M-2002-004 Bond Calculation Red Rock Plant and Limestone Mine Executive Director <br />Michael B. Long <br />The Division of Minerals and Geology (DMG) has re-calculated the bond for the subject project. The pie-°n Director <br />calculated values are significantly higher than those presented by the applicant, largely as a result of the <br />assumptions regarding demolition of superstructure. I am listing the assumptions with the appropriate logic or <br />reference number taken from the Means Handook for 2002 <br />Me[hod: <br />First, spot calculate the volumes presented. A check of 16 of the calculations indicated that they were <br />accurate. <br />Second, determine appropriate demolition values from CIRCES or Means 2002. <br />Assumptions: <br />• First: Page L-1 of the application references "unit costs for comparable reclamation activities <br />described in other recently approved reclamation permits in Colorado, most notably for the Climax <br />Mine". The assumptions for the Climax mine are that the superstructure is to be disposed of in the <br />existing pit, which is within approximately 1000 feet. GCC has indicated that they are basing their <br />bond on disposal off-site at a permitted landfill. The cost for from the CIRCES program for <br />superstructure demolition and disposal in this case is $0.591 per cubic foot, compared to the <br />assumption in the application of $0.12. This results in a significant cost increase over that presented. <br />Second: We are assuming the mine site reclamation to include the following: <br />Plant site revegeatation 51.7 acres <br />Rail spur revegetation 9.2 acres <br />Mine site revegetation 124.0 acres <br />Total revegetation 231.4 acres <br />Grading and full reclamation (Mine) 4b.5 acres <br />Including subsoil replacement 173272 cy (107.4 acres) <br />Including topsoil replacement 750200 cy (46.5 acres) <br />Including grading slopes [0 4:1 257,900 cy (from application) <br />The applicant supplied bond amounts to $4,343,537.00, while the bond calculated by the Division of Minerals <br />and Geology (DMG) is $11,846,599.00. The applicant may wish to reconsider the off-site disposal in an <br />effort to reduce the bond cost. <br />• <br />