2009-01-26_REVISION - C1981012 (2)

Home Browse Search

STATE OF COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY Department of Natural Resources 1313 Sherman St., Room 215 Denver, Colorado 80203 Phone: (303) 866-3567 FAX: (303) 832-8106 COLORADO D I V I S ION OF RECLAMATION MINING SAFETY INTEROFFICE Bill Ritter, Jr. Governor MEMORANDUM Harris D. Sherman Executive Director TO: Kent Gorham Ronald w. cottony Division Director Natural Resource Trustee FROM: Jim Star SUBJECT: New Elk Mine RN-05 Cost Estimate DATE: 26 January 2009 Attached it the reclamation cost estimate for the New Elk Mine Permit renewal 05. The estimate is 82 tasks (a summary sheet through task 113) and represents a new liability of $2,933,030.00. This new liability is $188,061 more than the current liability and bond held of $2,744,969.00. Based on the Permit Renewal 05 estimate, New Elk will need to submit additional bond monies. There are several reasons why the cost estimate increased as a result of Permit Renewal 05. First, equipment costs increased. This was somewhat offset by an increase in production of newer models of equipment. Second, overall demolition costs increased approximately $21,000.00. Third, the portal sealing costs increased by approximately $100,000.00 (this is the lion's share of the increase). This is due to the addition of the East Portal Fan Shaft sealing to the estimate (in task 100). Fourth, the costs for the miscellaneous reclamation tasks and equipment mobilization tasks have increased by approximately $20,000.00. Finally, based on the above increases in costs, the indirect costs have also increased (by approximately $41,000.00). Please let me know if you have any questions or need any additional information. cc: Sandy Brown w/out attachments Office of Office of Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines