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�r <br />�WILDEARTH <br />GUARDIANS <br />A FORCE FOR NATURE <br />Joe Pizarchik <br />Director <br />Office of Surface Mining <br />Reclamation and Enforcement <br />1951 Constitution Ave. NW <br />Washington, D.C. 20240 <br />February 8, 2016 <br />BY U.S. EXPRESS MAIL <br />OVERNIGHT DELIVER�,EIVE® <br />FEB 19 2016 <br />DMSION OF RECTION <br />MINING AND SAFLAMAETYY <br />Re: Citizen Complaint Under Surface Mining Control and Reclamation Act Over <br />Peabody Energy's Self -bonding in Colorado, New Mexico, and Wyoming <br />Pursuant to the Surface Mining Control and Reclamation Act ("SMCRA"), 30 U.S.C. §§ <br />1267(h)(1) and 1271(a)(1), and regulations thereunder, 30 C.F.R. § 842.12(a), WildEarth <br />Guardians hereby writes to inform the Office of Surface Mining Reclamation and Enforcement <br />("OSMRE") that violations of U.S. Surface Mining Control and Reclamation Act ("SMCRA") <br />appear to be occurring in the states of Colorado, New Mexico, and Wyoming, and that these <br />violations be inspected and remedied. <br />Specifically, it appears that reclamation bonding requirements under SMCRA are not <br />being met with regards to operations at permitted mines owned by Peabody Energy. Peabody <br />appears to have failed to notify respective state regulatory agencies that the company no longer <br />qualifies for self -bonding, and to post an alternative bond within 90 -days, as required by 30 <br />C.F.R. § 800.23(g). Under SMCRA regulations, if a company fails to post an adequate bond, it <br />must "cease coal extraction." 30 C.F.R. § 800.16(e)(2). Below, we provide a written statement of <br />the apparent violations necessitating inspections and remediation. <br />I. BACKGROUND <br />Under SMCRA, before a company can mine coal, they are required to post bonds <br />covering the full cost of reclamation in case mining operations are abandoned prior to the <br />completion of reclamation. See 30 U.S.C. § 1259 and 30 C.F.R. § 800.11. Although normally, <br />companies post surety bonds or offer collateral to ensure the costs of reclamation can be covered, <br />SMCRA allows companies to post self -bonds, or corporate guarantees. See 30 C.F.R. § 800.23. <br />Self -bonds are essentially agreements between companies and regulatory authorities where the <br />mining companies guarantee to cover the costs of reclamation, but do not actually provide direct <br />funds, collateral, or third -party guarantees to cover such costs. See 30 C.F.R. § 800.5(c) (defining <br />1536 Wynkoop, Suite 310 Denver CO, 80202 303-437-7663 fax 505-213-1895 www.wildearthguardians org <br />DENVER • LARAMIE • MISSOULA • PORTLAND • SAN DIEGO • SAN FRANCISCO • SANTA FE • SALT LAKE CITY • TUCSON <br />