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Peabody Sage Creek Mining, LLC <br />Page 5 <br />April 3, 2015 <br />selenium levels is not justified or warranted in an update to the PHC, please provide <br />a justification for the exclusion of such discussion. <br />26. In accordance with Rule 2.05.6(3)(b)(v), based on any updated PHC section of the permit <br />discussed in the previous item, please update the hydrologic reclamation plan specifically <br />addressing any adverse hydrologic consequences resulting from elevated selenium levels. <br />3.03.2; Determination of the Bond Amount <br />27. The Division updated the reclamation cost estimate for the site. The last substantial update to the <br />reclamation cost estimate occurred during the Midterm Review (MT1) of the permit conducted in <br />2013. Since then, there have been several revisions and two bond release (SL1 and SL2) <br />approvals that have changed the liability amount. The reclamation cost estimate enclosed with <br />this letter takes into account the approved revision and bond release applications. The current <br />liability for the site is $3,636,389.73. The Division's updated reclamation cost estimate liability <br />amount was calculated to be $3,753,199.27. The Division is currently processing, and has yet to <br />approve, the SL3 bond release application. Given this, the liability associated with the SL3 bond <br />release application is included in the updated cost estimate. Please review the cost estimate. <br />Other <br />28. The Division received two comment letters. They are enclosed. History Colorado submitted a <br />letter dated February 10, 2015. The Division of Water Resources submitted a letter dated March <br />2, 2015. Please review these letters and address any concerns. <br />If you have any questions please feel free to contact me at (303) 866 -3567, extension 8120 or at <br />Jared.Ebertkstate.co.us <br />Sincerely, <br />Jared Ebert <br />Environmental Protection Specialist <br />Enclosures: <br />1. Reclamation Cost Estimate for the Peabody Sage Creek Mine; RAT], April], 2015 <br />2. History of Colorado Comment Letter, Dated February 10, 2015. <br />3. Division of Water Resources letter, Dated March 2, 2015. <br />