2009-06-02_REVISION - C1981008

• Permit No: C1981008
• IBM Index Class Name: REVISION
• Doc Date: 6/2/2009
• Doc Name: Revised Cost Estimate
• From: Susan Burgmaier
• To: Marcia Talvitie
• Type & Sequence: RN5
• Email Name: MLT
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
June 2, 2009
To: Marcia Talvitie
From: Susan Burgmaier 9kr
Re: New Horizon Mine (Permit No. C-1981-008)
Permit Renewal No. 5 (RN-05)
Phase II Bond Release Request (SL-11)
COLORADO
D I V I S I ON O F
RECLAMATION
MINING
SAFETY
Bill Ritter, Jr.
Governor
Harris D. Sherman
Executive Director
Ronald W. Cattany
Division Director
Natural Resource Trustee
I have completed a revised cost estimate for remaining reclamation liability following the
proposed Phase II Bond Release (SL-11) at the New Horizon Mine. The new estimated cost
for reclamation is $5,042,302.00.
When Western Fuels Colorado (WFC) applied for renewal of its permit for the New Horizon
Mine, the Division estimated the reclamation liability at the site to be $5,351,790.00 (January
2008). WFC then decided to seek Phase II bond release on six reclaimed areas, so the
Division delayed renewal of the permit pending approval of the bond release. In the meantime,
WFC submitted TR-57, which increased the required replacement depth of subsoil and topsoil
on the prime farmlands within the disturbed area. This resulted in an increase, to
$6,321,214.00, of the reclamation liability at the site. With the proposed decision to release six
areas of reclamation (SL-11), liability will be reduced to $5,042,302.00
January 09, 2008 RN-05 Pre- June 02, 2009 RN-05 Pre- June 02, 2009 SL-11
Release Estimate Release Estimate (Includes Estimate
TR-57
$5,351,790.00 $6,321,214.00 $5,042,302.00
A summary of the major changes to the, reclamation cost estimate since January 2008 follows,
and the revised reclamation cost estimate packet is attached.
Worksheet 00a: Support equipment costs are reduced with the decrease in equipment hours
required for topsoil replacement; hourly operating costs for a D9N-U have decreased. Total
direct cost decrease amount: $107,775.00.
Worksheet 00b: The total area requiring final grading is reduced consistent with the acreage
approved for Phase II release. Total direct cost decrease amount: $7,038.00.
Worksheet 00c: No change.
Office of Office of
Mined Land Reclamation Denver - Grand Junction - Durango Active and Inactive Mines