2016-02-19_ENFORCEMENT - C1982057 (5)

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UNITED STATES DEPARTMENT OF THE INTERIOR Originating Office. Denver Regional Office Office of Surface Mining us DOI, Office of Surface MiningRECEIVED Reclamation and Enforcement 1999 Broadway, Suite 3320 TEN-DAY NOTICE Denver, CO 90202 FEB 19 2016 Number X16-140-182-001 TV 3 Telephone Number: (303) 293-5000 MINING AND SAFETY Ten -Day Notice to the State of Colorado You are notified that, as a result of Citizen Information (e.g. a federal inspection, citizen information, etc.) the Secretary has reason to believe triat fhe person described below is in violation of the Act or a permit condition required by the Act. If the State Regulatory Authority fails within ten days after receipt of this notice to take appropriate action to cause the violation(s) described herein to be cor- rected, or to show cause for such failure and transmit notice of your actino to the Secretary through the originating office designated above, then a Federal inspection of the surface coal mining operation at which the alleged violation(s) is occurring will.be conducted and appropriate enforcement action as re- quired by Section 521(a)(1) of the Act will be taken. Permittee: SENECA COAL COMPANY, LLC County: ROUTT Surface (Or Operator if Mailing Address: 701 MARKET STREET,, ST. LOUIS, MO 63101 ❑ Underground Permit Number: C-82-057 Mine Name: SENECA 11-W 0 Other 01 NATURE OF VIOLATION AND LOCATION: Self -bond applicant must meet appropriate financial criteria (credit rating, tangible net worth of $10M or fixed assets of $20M and a ratio of assets to liabilities of 1.2 times or greater). Section of State Law, Regulation or Permit 3.02.4(2)(e)(i)(C) Condition believed to have been violated: 02 NATURE OF VIOLATION AND LOCATION: Total amount of self -bond must not exceed 25 percent of applicant's tangible net worth in the United States. Section of State Law, Regulation or Permit 3.02.4(2)(e)(iv) Condition believed to have been violated: 03 NATURE OF VIOLATION AND LOCATION: Self -bond guarantor failed to notify regulatory authority of ineligibility for self -bond and to post alternative bond within 90 days. Section of State Law, Regulation or Permit 3.02.4(2)(e)(vii) Condition believed to have been violated: Remarks or Recommendations: WildEarth Guardians alleges potential violations of self -bonding requirements due to the subsidiary guarantor's assets being pledged by the parent as collateral for debt, Peabody's credit rating being downgraded below regulatory thresholds, Peabody's total liabilities to net worth ratio being greater than 2.5, Peabody's total amount of self -bonds exceeding 25 percent of its tangible net worth in the United States, and that Peabody failed to notify DRMS it no longer qualified for self -bonding and post an alternative bond within 90 days. Date of Notice: 02/16/2016 Signature of Authorized Rep.: �A=1_ - v Print Name and ID: Christine Belka ID# 182 Page 1 of 1 Revised October 1, 1998