2009-12-04_REVISION - C1994082

• Permit No: C1994082
• IBM Index Class Name: REVISION
• Doc Date: 12/4/2009
• Doc Name: Reclamation Cost Estimate ‎(Memo)‎
• From: Jim Stark
• To: Dan Mathews
• Type & Sequence: SL2
• Email Name: DTM
• Media Type: D
• Archive: No

STATE OF COLORADO
ON OF RECLAMATION, MINING AND SAFETY
nent of Natural Resources
313 Sherman St., Room 215
)enver, Colorado 80203
hone: [phone]
AX: [phone]
COLORADO
D IV IS I ON OF
RECLAMATION
MINING
SAFETY
Bill Ritter, Jr.
INTEROFFICE Governor
Harris D. Sherman
MEMORANDUM Executive Director
Ronald W. Cattany

TO: Dan Mathews Division Director
Natural Resource Trustee
FROM: Jim Stark
SUBJECT: Yoast Mine's SL-02 Cost Estimate
DATE: 4 December 2009
I have completed the reclamation cost estimate for the Yoast Mine's Partial Phase I Bond
Release SL-02 application. The estimate is a cost update of all remaining work (not
included in the SL-02 application) at the Yoast Mine. Based on this estimate, the new
liability at the Yoast Mine is $4,305,484.00. This new liability is $790,205.00 less than
the current liability of $5,095,689.00 and $894,516.00 less than the current bond held of
$5,200,000.00. Based on this cost estimate review, the Division can release
$790,205.00 upon the approval of SL-02.
Although the Division will still hold an excess in bond of $104,311.00, this portion of the
bond cannot be released since SCC did not request a bond reduction in addition to the
bond release in the SL-02 application. The release amount ($790,205.00) is lower than
that requested by SCC ($1,365,265.00) due to two factors, as detailed below. Based on
the proposed release amount of $790,205.00, the Division would be releasing 15.5% of
the Yoast Mine's bond. This amount is well below the allowable 60% for the successful
completion of backfilling and grading and drainage reestablishment.
The first reason the Division's release amount is lower than that request by SCC is that
when the Division determines a releasable amount for a bond release it calculates the
cost, in current dollars, to complete all remaining reclamation activities not covered in the
bond release application, whether they have been completed on the ground or not (such
as road reclamation and topsoil replacement). This recalculation led to cost increases in
some areas of the bond. The largest of these increases was in the revegetation costs,
which increased from $807,151.00 (in the 2008 Midterm estimate) to $1,025,567.00 in
the current estimate.
The second reason the Division's releasable amount is less than that requested is because
of the exclusion areas, based on the bond release inspection. These exclusion areas
Office of Office of
ined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines