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As part of our ongoing land management programs, TC conducted managed livestock grazing activities <br />(approximately 2,100 steers) on the bond - released areas. Due to the previous year's drought conditions, the <br />number of steers was initially reduced, however with good snowpack and additional spring moisture, additional <br />steers were brought in consistent with the available forage. TC and Peabody's Corporate Environmental Group <br />also initiated a range assessment program to evaluate range condition and provide a tool for ongoing evaluation <br />of stocking rates and range management. <br />TC prepared and submitted a Phase I Bond Release request, resulting in approval of a partial bond release in the <br />amount of $347,892 covering approximately 15.3 acres, and including facilities demolition and reclamation of <br />the 9 -Right and 18 -Right shaft sites and the Fish Creek Tipple facilities. There are several areas on the attached <br />"2013 Annual Reclamation Report Disturbed Acreage" summary that are identified as "Reclaimed ". These <br />areas have previously been regraded and stabilized with vegetation, however, TC has not pursued bond release <br />for these areas due to the potential for re- disturbance in conjunction with required access and site maintenance <br />activities. <br />Permit approvals during 2013 resulted in a net increase in the calculated reclamation liability and surety <br />coverage of $54.681, to a total of $9,368,159, at year -end (MR13 -273, does not include MR13 -272 which was <br />approved in 2014), summarized as follows: <br />Permit Renewal RN06 ($0) <br />PR12 -09, WMD Panel Extension (withdrawn) <br />TR12 -81, CRDA Ditch Modifications ($0) <br />TR13 -82, WMD Panel Extension ($0) <br />MR13 -266, WMD Cultural Resource Survey ($0) <br />MR13 -267, EMD Monitoring Boreholes ($15,153) <br />MR13 -268, Portal Waste Transfer Station Expansion ($0) <br />MR13 -269, TRO Coreholes ($25,163) <br />MR13 -270, 7RT TUF Borehole ($8,563) <br />MR13 -271, EMD Drilling Road Modifications ($1,321) <br />MR13 -273, 2MN TUF Borehole ($4,481) <br />Attached are copies of the standard form (CDRMS) Annual Reclamation Report for 2013. If you have any <br />questions or require further information, please feel free to contact me directly at (970) 870 -2712. <br />Best regards, <br />Twentymile 1 <br />Jerry M. Nett t <br />Manager E * nmental Affairs <br />Attachments <br />cc: Mike Berdine /TCC <br />