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Well, file-size doesn't have as much to do with it as you think, but 12GB for 60 minutes sounds like you are extracting it compressed. This will certainly have reduced quality ... especially if you are going to edit and then re-render it later.
You want to try to extract it as raw or as close to raw as you can get. In Windows world you should try to extract as an uncompressed AVI. You should be looking at about 1GB per minute.
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