In order for the lid to lift we need to remove a portion of the plastic flaps that allow it to snap tight over the bucket. So choose the side of the lid where you want to place the hinges, and use the Dremel to cut this portion of the flaps away. You could cut the flaps off entirely, but I left them in place for two reasons:
1) It's less work
2) If you leave the majority of the flaps in place you can still snap the lid in place. This will keep curious dog noses out of the recyclables and still allow easy access.
Once you cut off the flaps use your fingers and the pliers to break off any waste plastic.