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r Department of Energy <br />• Western Area Power Administration <br />1 f Rocky Mountain Customer Service Region <br />P.O. Box 3700 <br />4 s( Loveland, CO 80539 -3003 <br />JAN 2 5 2014 <br />Letter Agreement No. 13 -RMR -2400 <br />Peabody Sage Creek Mining, LLC <br />(Sage Creek Mine Structural Analysis Request) <br />Mr. Scott Cowman <br />Senior Environmental Specialist /GIS <br />Peabody Sage Creek Mining, LLC <br />36600 Routt County Road 27 <br />Hayden, CO 81639 <br />Dear Mr. Cowman: <br />Peabody Sage Creek Mining, LLC (Peabody) is proposing to perform long wall coal mining <br />activities in the Sage Creek Mine area of Routt County, Colorado, Sections 3, 10, and 11, <br />T5N R87W. Western Area Power Administration (Western) owns the Hayden -North Park <br />230 -kV Steel Lattice and the Gore Pass - Hayden 138 -kV Wood -H Transmission Lines that are <br />located in the Sage Creek Mine area. Peabody has contracted SubTerra, Inc. to perform a <br />subsidence study on the Sage Creek Mine area (Sage Creek Mine Subsidence Study). Peabody <br />has requested that Western perform a structural analysis of Western's structures along these <br />transmission lines to assess the impact of long wall coal mining beneath them. Western will <br />conduct the analysis under the provisions of this Letter Agreement No. 13 -RMR -2400 <br />(Agreement) between Western and Peabody. Western will continue to own, operate, and <br />maintain these transmission lines. No mining will be accomplished until the structural analysis <br />study is complete and until, and if, a separate agreement is negotiated and executed between <br />Peabody and Western. By executing this Agreement, Western is under no obligation to execute <br />a subsequent agreement to allow mining, and is not agreeing in any way to allowing mining <br />operations and does not waive any rights Western may have. <br />Two other transmission lines are in the area; the Ault -Craig 345 -kV Steel Lattice and the <br />Hayden -Gore Pass 230 -kV Steel Lattice. These transmission lines are owned by multiple other <br />utilities. Any issues between Peabody and other impacted entities shall be addressed solely by <br />Peabody. <br />