2011-08-19_REVISION - C1981028 - Laserfiche WebLink

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TO ROB ZUBER FROM: JANET BINN SUBJECT: KEENESB DATE: 8/19/2011 CC: DAN HERNANDEZ INTEROFFICE MEMORANDUM TION COST UPDATE I have updated the Keenesburg Reclamation cost estimate for Permit Renewal No. 6. I used the new QRCES program. I used volumes and acreages from SL5. The 2010 ARR indicated that no new acreage had been disturbed and no new areas had been seeded. The last approved bond release, SL5, provides the most up to date information regarding permittee liability. The Reclamation Cost Estimate (RCE) conducted September 7, 2010 reflected Coors Energy Company (CEQ reclamation liability of $2,001,475.00. The August 19, 2011 RCE calculated GEC's reclamation liability of $1,913,161.94. This is a reduction of $88,313.06 or 4.4% A portion of the reduced reclamation liability is due to reduced hours for completion of tasks. Although the tasks and material volumes remained unchanged, the task hours changed from 1,176.45 hours (SL5) to 1,110.98 for RN6. Updates to the QRCFS program reflect updated equipment efficiency rates. QRCES also factors in location labor rate adjustments. For the RN6: RCE (8/2011) the location rate adjustment for Weld County is , (96.90 %). Comparison of ownership and operating costs shows that some of these rates are lower for the 2011 estimate than for the 2010 estimate. Motor grader operating rates are lower. The biggest cost difference appears to be in the swell factor applied to the larger earthmoving tasks; 5a, 5b, 7a, 10, 40, and 45a. The updated QRCES program applies a swell factor of 1.124 to the predominately sandy spoil and soil materials. The factor is in agreement with the Caterpillar Performance Handbook 40th edition (January 2010). This corrected swell factor reflects and overall reduction in the amount of material moved in scraper tasks. This result in fewer hours required for each of the scraper tasks and a lower cost to complete each scraper task