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<br />iiiiiiiiiiiiiiiiiii <br />STATE OF COLORADO <br />MINED LAND RECLAMATION DIVISION <br />OF ~ C0~ <br />Department of Natural Resources ~9 <br />~~ <br />1313 Sherman St., Room 215 <br />Denver, CO 80203 ' ' <br />• <br />+ <br />303 866-3567 're76' <br />Fnx~303 832-8106 <br />Roy Romer, <br />Goverrar <br />Fred R. Banta, <br />DATE: February 27, 1990 Division Director <br />T0: Jeff Clanton <br />FROM: Tim King <br />RE: Edna Midterm Review File and Moffat Area PR1 File, C-80-001 <br />After calculating the bond liability for both the West Ridge area and the <br />Moffat area of the Edna Mine, I compared my calculations against those of <br />PBM, Edna's current bond amount is $7,121,196.00, The current permit <br />application indicates $6,390,000,00 in liability. The worst case <br />($6,931,486,00 in liability) for this 5 year permit term, according to PBM, <br />occurred in year 2 which was in 1989. Since we are now in year 3, the current <br />liability is less than worst case, The Moffat area permit revision indicates <br />a worst case occurring in year 3 (1990) with associated liability of <br />$4,893,800,00. I concur with P8M's conclusion that the worst case will occur <br />in year 3 or 1990, My calculations show $3,963,000,00 in total liability for <br />the worst case disturbance for both the West Ridge area and the Moffat area. <br />My amount is slightly more than one half of P&M's amount in the permit <br />application. This is a significant difference. MY amount is approximately <br />80% of the Moffat revision calculation, a much smaller difference. While I <br />calculated the bond by task, Edna calculated the bond by cost per acre. The <br />two methods are totally different and could not be compared directly, <br />However, I was able to make a comparison as you will see in the following <br />table. Much information needed to be dissected and sorted before any <br />conclusions could be made. Notable differences in the calculations are <br />outlined below: <br />Direct Costs <br />P+M 10/22/86 <br />$1,243,000 total revegetation <br />costs <br />TK 2/20/90 <br />1, Almost $700,000 total revegetation <br />costs. <br />This amount of difference can be attributed to the larger acreage figure <br />given by P+M of 602,76 acres, as opposed to MLRD's maximum acreage figure of <br />230.64 acres. However, P8M's revegetation costs per acre were lower than <br />mine. This is due to the fact that they did not include costs for mulch, and <br />fertilization on 70% of their area. The difference in cost per acre was <br />obviously more than offset by the larger acreage figure. <br />