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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. TC and Peabody's Corporate Environmental Group <br />also continued a range assessment program to evaluate range condition and provide a tool for ongoing <br />evaluation of stocking rates and range management. <br />There are several areas on the attached "2015 Annual Reclamation Report Disturbed Acreage" summary that are <br />identified as "Reclaimed". These areas have previously been regraded and stabilized with vegetation, however, <br />TC has not pursued bond release for these areas due to the potential for re -disturbance in conjunction with <br />required access and site maintenance activities. <br />Permit approvals during 2015 resulted in a net increase in the calculated reclamation liability and surety <br />coverage of approximately $48,150 to a total of $9,909,130 at year-end, summarized as follows: <br />PR15-1 1, WCR Development and Mining wo/Federal Lease Modification (approval pending, $0) <br />MR] 5-286, Officer and Director Updates ($0) <br />MR 15-287, Offset Drill Zones II and WC -030 (approval pending cultural resources report) <br />MR] 5-288, 5MN Water Pipelines ($7,257) <br />MR15-289, 10 -East Emergency Borehole ($13,058) <br />MR] 5-290, CRDA Soil Stockpile Relocation ($3,454) <br />MRI 5-291, 13 -Left Outby Utility Borehole ($24,381) <br />MR 15-292, 13 -Left Outby Utility Borehole Cultural Resource Survey ($0) <br />Attached are copies of the standard form (CDRMS) Annual Reclamation Report for 2015. 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 Coal, LLC <br />Jerrv.,M. N <br />mental Affairs <br />Attachments <br />cc: Mike Berdine/TCC <br />