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~ III lllllllllllll III • <br />999 <br />STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Depanmenl of Natural Resources <br />1313 Sherman 51., Room 215 <br />Denver, Colorado 80203 <br />Phone: (3031 8663567 <br />FAX: ( 03) 8 2-810 <br />~cto er ~, 1996 <br />Mr. Richazd Mills <br />Twentymile Coal Company <br />29587 Routt County Road 27 <br />Oak Creek, CO 80467 <br />I~~~~ <br />DEPARTMENT OF <br />NATURAL <br />RESOURCES <br />Roy Romer <br />Governor <br />lames S Lni hheari <br />Executive D~renor <br />Michael 8. I nng <br />Dinsiun Duey nor <br />Re: Foidel Creek Mine, C-82-056: Midterm Review, Reclamation cost estimate. <br />Follow up to Informal Conference held September 19, 1996 <br />Dear Mr. Mills: <br />This letter serves to follow up on some of the questions you had asked during the informal <br />conference held on September 19, 1996, regarding the Foidel Creek Midterm Review. <br />These questions focused on costs included in the Division's reclamation liability estimate. <br />1) Twentymile Coal Company (TCC) questioned why DMG included a fertilizer cost <br />in the seeding task, 91C. Twentymile currently does not apply fertilizer to reseeded <br />lands. On page 2.05-76 of the Foidel Creek Mine permit, TCC states that fertility <br />analysis for N, P, and K will be conducted prior to seeding and fertilizer applied if <br />recommended. The Division considers it necessary to retain a cost for fertilizer, <br />especially considering that topsoil will be utilized from inactive stockpiles. <br />2) Job efficiency adjustments are determined from information found in the Caterpillar <br />Handbook (23rd. edition). Altitude deration factors into the efficiency of the <br />equipment. The hourly shift efficiency calculates into the formula as well. One and <br />two shifts per day is calculated as a 50 min. hour, while three shifts per day is <br />calculated on a 45 minute hour. Please use task No. 72 as an example 0.97 (altitude <br />adjustment) x 0.83 (1 shift/day) = 0.8051 (net correction) for job efficiency <br />adjustment. <br />3) TCC questioned whether we had included a reclamation cost for other large <br />underground mines' permitted coal stockpiles. It has been Division policy to include <br />a reclamation cost estimate for 50% of the permitted coal storage volume. I <br />confirmed that reclamation estimates for three other large underground mines had <br />included costs for removal of 50% of the permitted coal stockpiles. <br />4) TCC believes that the CYVCC Office building was included in the Eckman Park <br />permit. It has not been included in the Eckman Park Reclamation cost estimate. <br />Page 780-139(k) item 6, in the Eckman Park permit lists "Removal of facilities <br />