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\ .~ <br />~• <br />TRAPPER DINING INC. <br />III IIIIIIII I <br />July 25, 1996 <br />- ot-r1=1VED <br />Mr. Joe Dudash ~~L 29 <br />Environmental Protection Specialist 996 <br />Colorado Division of Minerals and Geology <br />1313 Sherman Street, Room 215 olvl5lon of Minerals & Geology <br />Denver, CO 80203 <br />Dear Mr. Dudash: <br />Subject: Midterm Permit Review Redamation Borid Revisions <br /> <br />Modifications to the reclamation bond for Trapper Mine's 1993-1997 permit tens are attached. The origi- <br />nal permit showed 1994 to be the worst case year during the permit term. This year has passed; however <br />the bond calculation is still based on the data developed in the original permit for that year. The revised <br />bond liability has increased from $15,000,000 to $17,291,889. The breakdown of new costs is shown in <br />revised Table 1.4-1, Summary of Costs for Trapper Mine Bond Calculation. A brief description by activ- <br />ity of the methodology used to update the bond follows. <br />Rea_rade <br />Bond regrade costs increased l9% to $8,401,883. Equipment and labor cost increases published th the <br />Cost Reference Guide the Contractors Equipment Cost Guide, and the Colorado Contractors Association <br />Wage Rate Schedule acwunted for all of the additional costs. Revised Tables 1.4-2 through 1.4-6 are <br />included. <br />Topsoil Replacement <br />Topsoil replacement costs increased by 11.3% to $3,242,097. The permit basis for the volume of topsoil <br />to be moved reflected a total disturbance of 2,091 acres. Current projections indicate that the worst case <br />disturbance for the permit term will approximate 1,950 acres. The difference includes the delayed devel- <br />opment of the 1-pit reserves and a later than planned start to F pit operations. The revised bond estimate is <br />based on the original 2,091 acres. The cost increases associated with topsoil replacement aze due to <br />increased equipment and labor costs reflected in DMG approved references noted under the "Regrade" <br />section above. Table 1.4-7, Summary of Topsoil Replacement Costs is attached for reference. Also <br />included is Table 1.4-8, Calculations for Time Required for Topsoiling . <br />Facilities Removal <br />Facilities Removal costs increased by 8.2%to $1,058,000. All increases were due to increases in rates <br />used in Means Building Constmction Cost Data (1995), the Cost Reference Guide and the Colorado Con- <br />tractors Association Wage Rate Schedule. A revised Table A-1, Facilities Removal Calculations is pro- <br />vided for insertion in Appendix A of the pemtit. <br />Reveeetation <br />Revegetation costs increased 7.6% to $954,672. Tables 1.4-9 through 1.4-13 detail the development of the <br />revised total. Rental rates on farm equipment were escalated at 3% per year for 3 years (compounded <br />~ P.O. Box 187 Craig. Colorado 81626 (303) 824-4401 <br />