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Peabody Sage Creek Mine <br />SL -3 Phase III Bond Release Request <br />July 2014 <br />Grazing. Livestock grazing has been conducted on PSCM (former Seneca II) reclaimed <br />lands since 1987. The grazing season has historically been from mid July to mid - <br />September. Livestock grazing has been conducted annually and livestock numbers have <br />increased as more reclaimed acres became available and the vegetation communities <br />continued to mature. Stocking rates have been developed from ongoing vegetation <br />monitoring data and a goal of a proper use at 50% forage utilization has been a basis of <br />management. Annual precipitation and the effects on current year's production are <br />factored into annual management. Grazing on the smaller Seneca II Mine is managed in <br />conjunction with the larger adjacent PSCM reclaimed areas. Results of grazing are <br />presented in the Seneca II and PSCM Annual Reclamation Reports for each year since <br />1988. <br />Bond Release Background Information <br />In 2006, the original Seneca II Mine was divided into five (5) bond release blocks (BRB 1, 2, 3, 4 <br />and 5) to aid in vegetation data collection and analysis for Phase II and Phase III bond release. <br />In 2010 with approval of the PSCM permit, approximately 3,012 acres of the original Seneca II <br />permit area were transferred to PSCM and this area contained much of the reclaimed lands in the <br />Seneca II Mine BRB areas. Only a small portion of lands (386.5 acres) remain within the Seneca <br />II Mine permit (see PR -02 for the Seneca II Mine approved on January 19, 2011). This Phase III <br />bond release application includes BRB -2 and BRB -3 areas which were revegetated from 1977 <br />through 1995. Phase II bond release has been approved for the requested Phase III block in SL- <br />3 submitted under the Seneca II permit. <br />Phase III bond release is being requested for 1,028 acres of reclaimed lands at PSCM. These <br />lands have established vegetation that has met the minimum ten year liability period and are able <br />to support the approved post - mining land use. Phase III revegetation success evaluations were <br />based on the applicable success standard requirements and procedures spelled out in Exhibit <br />2.05.4 -E1 of the PSCM permit, Rules 3.03.1(2) (c), 3.03.1 (4) and 4.15.8 and the Division's <br />Guideline Regarding Selected Coal Mine Bond Release Issues (April 1995). Revegetation success <br />is demonstrated by meeting the appropriate cover, production, woody density and species <br />diversity success standards based on statistically valid sampling. Species composition and <br />5 <br />