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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAEETY <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 />DATE: August 23, 2006 <br />TO: Joe Dudash <br />FROM: Susan Burgmaier <br />RE: BearNo. 3 Mine C-1981-033 <br />Minor Revision No. 27 <br />Structural Demolition <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />- &- <br />SAFETY <br />Bill Owens <br />Governor <br />Russell George <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />Per your request, I have completed a revised cost estimate for the Bear No. 3 Mine. As <br />you, Sandy and I discussed, I revised the entire estimate for current costs as part of the <br />midterm review you are working on. The new reclamation liability amount is <br />$276,438.00, an increase of $ 116,968.00 (from the 1993 cost estimate). The reason for <br />the increase is as follows: <br />Tasks using a bulldozer (1, 3, 4, 6, 7, 7b, and 17) were revised for current <br />costs, which are $30.60 higher per operating hour than when the estimate was <br />last done. Also, the Division now uses a spoil pile correction factor, <br />consistent with estimating guidelines found in the Caterpillar Handbook. The <br />Division used a factor of 0.75, which represents final grading with a medium <br />to rough finish. Also, a D7R dozer was used (previous estimate assumed a <br />D8N) in consideration of the width of the bridge used to access to the site. <br />2. The reclamation costs for the water treatment pond (new Task 3) had not been <br />included in the Division's previous estimate. The new estimate includes <br />$1,239.00 for reclamation of the water treatment pond. <br />Reclamation costs for the sediment pond (Task b) are increased for the <br />reasons described in Item 1, above, as well as an increase in the estimated <br />embankment volume. The embankment volume is now based on field <br />measurements and calculations conducted by Jim Stark on August 9, 2006. <br />Details of his estimations are included in his inspection report for the site on <br />that date. <br />4. The estimate now includes a cost for ripping/scarifying topsoil in preparation <br />for seeding (Task 8). This is normally included in Division cost estimates, but <br />was inadvertently omitted from the previous estimate. <br />Office of Office of <br />Mined Land Reclamation Active and Inactive Mines <br />