2014-03-04_REVISION - C2009087 - Laserfiche WebLink

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Peabodq Peabody Sage Creek Mining, LLC January 10, 2014 RECEIVED Mr. Jason Musick MAR 0 4 2014 Division of Reclamation, Mining and Safety 1313 Sherman Street, Room 215 DIVISION OF RECLAMATION Denver, CO 80203 -2273 MINING AND SAFETY Peabody Sage Creek Mine PO Box 250 36600 Routt County Road 27 Hayden, CO. 81639 RE: Peabody Sage Creek Mine (PSCM) (Permit No. C- 2009 -087) — Permit Revision (PRO1 -2014) CM Extension and Longwall Mining Dear Mr. Musick: PSCM hereby submits Permit Revision (PRO 1 -2014) to the approved Peabody Sage Creek Mining Permit (C- 2009 -087). PSCM requests a modification of the currently approved mine plan that includes continuous mining (CM) for the first several years followed by implementation of longwall mining methods. All coal is either state or federally owned and all required mineral leases have been obtained. Mining of federal coal may commence once this PR is approved and federal mine plan approval is granted by the Office of Surface Mining (OSM). Resource Recovery Plans (R2P2) have already been submitted and approved by the Bureau of Land Management. No additional surface facilities are included in this revision. Initial development of the mine included construction of facilities and CM mining that allowed for production of up to 2.0 million tons per year (MTPY). Installation of a longwall system will allow for increased production. Additional infrastructure required for full production will be permitted in subsequent revisions as the mine develops. Extension of CM sections and development of panels for longwall mining will require an expansion to the existing approved permit area boundary. The expanded permit area will overlap with the existing approved Foidel Creek Mine (FCM) permit boundary, with an overlap area of approximately 400 acres in Section 22 & 23 of T5N R87W. Mining activities in FCM's Western Mining District will have been completed however an air shaft and ancillary equipment and facilities (18 Left Shaft) will remain active and eventually be utilized by PSCM once required permit approvals are obtained. Longwall mining will result in subsidence increasing the total affected area of the mine. A subsidence report and Monitoring and Mitigation Plan are included with the submittal package. As with the FCM, subsidence is expected to have little effect on existing resources however areas will be monitored to ensure the effects from the subsidence will be mitigated per the Mitigation Plan and pursuant to DRMS regulations.