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Stark, Jim <br />From: Stark; Jim <br />Sent: 19 April, 2011 15:02 <br />To: Boulay, Mike <br />Cc: Brown, Sandy <br />Subject: Oxbow MT-06 Cost Estimate <br />Mike, <br />I have placed a copy of the Oxbow 2011 Midterm Review cost estimate at M:\coal\ rs\oxbow\mt-06, as it is too large to <br />e-mail. The new liability for the site is $4,248,392.00. This is a decrease of $513,597.00 from the current liability of <br />$4,761,989.00. <br />The main reason for the decrease was a decrease in the sealing cost for the boreholes (mainly the gob vent boreholes). <br />Since the last recalculation of the estimate with RN-05, Oxbow has changed their borehole sealing method. The new <br />sealing method calls for a 50 foot plug in each hole, as opposed to filling the entire hole with concrete, which was the <br />old method. The change has resulted in a dramatic decrease in sealing costs. The old cost for sealing the boreholes was <br />$822,136.00, while the new cost is $342,086.00. This is a decrease of $480,050.00. When indirect costs are added to <br />this decrease it accounts for the overall liability decrease. <br />As with any estimate, there were also fractional changes in the other costs (equipment costs, seeding costs, demolition <br />costs). While there were minor changes in the other task groups, they were on the order of a few thousand dollars <br />each, and tended to cancel each other out. <br />Please let me know if you have any questions or need any additional information regarding this estimate. I have placed <br />a copy of this e-mail and the estimate in for scanning. I will have the original estimate sent to you as well. <br />James R. Stark <br />Environmental Protection Specialist <br />Colorado Department of Natural Resources <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />303-866-3567 X8145 <br />www. m inin-g. state.co. us