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~~~ - • iii iiiiiiiiiiiiiiii • <br />', .~;c`°'~,, 59111 ~ OF COLORADO <br />Roy Romer, Govei <br />DEPARTMENT OF NATURAL RESOURCES <br />MINED LAND RECLAMATION DIVISION <br />FRED R. BANTA, Director <br />January 19, 1989 <br />Idr. Jim Hendricks <br />Pueblo Coal, Inc. <br />278 Sawyer Drive, Suite 1-A <br />Durango, Colorado 81301 <br />RE: Carbon Junction 14ine, Renewal Bond Review <br />File: C-82-054 <br />Dear h1r. Hendricks: <br />Enclosed is the documentation associated with the Division's review of the <br />adequacy of the reclamation bond for the Carbon Junction P•1ine. Our <br />reclamation cost estimate of 51,125,300.00 exceeds the currently held bond <br />amount by $194,150.00. The increase is due primarily to cost increases for <br />three major tasks; pit backfilling, topsoiling, and re vegetation. The <br />estimate should be considered preliminary at this point, since certain <br />information requested in the previous adequacy letter could have a bearing on <br />the requi red bond amount. <br />Information used in the bonding evaluation included vrorst case disturbance <br />projections submitted previously by Pueblo Coal and utilized in the Division's <br />January, 1987 Bond calculation. In addition, disturbed acreages were <br />evaluated using 1988 aerial photographs and volume calculations were performed <br />based on measurements taken during an October, 1988 inspection. Information <br />submitted in the April, 1986 temporary cessation notice was also taken into <br />consideration. <br />Our evaluation indicates that the existing disturbed acreage is within a few <br />acres of the projected worst case acreage. Field measurements indicate a pit <br />volume and topsoil stockpile volumes significantly in excess of worst case <br />projections provided by the permittee for the year 1985, prior to temporary <br />cessation. Pit and topsoil stockpile volume estimates are listed below. <br />Field notes upon which the volume estimates were based are enclosed. <br />Pit Volume 575,000 yd3 <br />Topsoil Stockpile #Z 200,000 yd3 <br />Topsoil Stockpile #4 198,000 yd3 <br />Topsoil Stockpile #7 99,000 yd3 <br />Topsoil Stockpile #8 48,500 yd3 <br />Revegetation costs increased for several reasons, including increased seed <br />costs and the fact that the cost of plastic netting installation was not <br />included in the previous bond estimate. The re vegetation plan for cropland is <br />not well defined in the application, and certain assumptions regarding seed <br />variety, seeding rate and fertilization rate, etc. were made for cost <br />215 Centennial Building, 1313 Sherman Street Denver, Coloratlo 80203-2273 Tel. (303) 866-3567 <br />