2016-02-19_ENFORCEMENT - C1994082 ‎(2)‎

• Permit No: C1994082
• IBM Index Class Name: Enforcement
• Doc Date: 2/19/2016
• Doc Name: Ten Day Notitce and Citizen Complaint
• From: OSM
• To: DRMS
• Violation No.: TDNX16140182005
• Email Name: MPB
• Email Name: JRS
• Email Name: JHB
• Media Type: D
• Archive: No

Ten -Day Notice Narrative: WildEarth Guardians February 8, 2016 Citizen Complaint Referral (Colorado)
As a result of the information below, the Office of Surface Mining Reclamation and
Enforcement (OSMRE) has reason to believe that the Colorado Division of Reclamation Mining
and Safety (DRMS) may be allowing Peabody Investments Corporation to operate in violation of
the approved Colorado state coal regulatory program under the Surface Mining Control and
Reclamation Act (SMCRA). Therefore, pursuant to 30 U.S.C. § 1271(a) and 30 C.F.R. §
842.11(b)(2), OSMRE is issuing the following Ten -Day Notices (TDN's) for the identified coal
mining operations in Colorado:
TDN #X16-140-182-001: Permit #C-1982-057 (Seneca II -W Mine)
TDN #X16-140-182-002: Permit #C-1982-056 (Foidel Creek Mine)
TDN #X16-140-182-003: Permit #C-2009-087 (Sage Creek Mine)
TDN #X16-140-182-004: Permit #C-1981-044 (Williams Fork Mine)
TDN #X16-140-182-005: Permit #C-1994-082 (Yoast Mine)
The Federal regulation at 30 C.F.R. § 842.11 provides that absent an imminent danger or harm
scenario, OSMRE must issue a TDN to a state Regulatory Authority (RA) when it has reason to
believe a violation exists or when, on the basis of a Federal inspection, it determines that a
violation exists and OSMRE has not issued a previous TDN for the same violation. These TDN's
are not based on Federal inspections, and OSMRE has not yet determined that violations exist.
However, based on the allegations in the Citizen's Complaint summarized below, OSMRE has
reason to believe that DRMS may be allowing Peabody Investments Corporation to operate in
violation of the Colorado Surface Coal Mining Reclamation Act and the Regulations of the
Colorado Mined Land Reclamation Board for Coal Mining by allowing Peabody's Colorado coal
mine permits to continue operations while failing to meet regulatory qualification criteria for
self -bonding.
On February 8, 2016, OSMRE received a Citizen's Complaint from WildEarth Guardians. The
complainant requested an inspection and enforcement action regarding ongoing coal mining
operations of Peabody Energy and its subsidiaries in Colorado, New Mexico, and Wyoming.
The complainant alleges violations of SMCRA, stating that they have reason to believe that
Peabody Energy and its subsidiaries are conducting coal mining operations in these states
without sufficient reclamation bonding as required by SMCRA. Specifically, the complainant
alleges potential violations of self -bonding requirements due to the subsidiary guarantor's assets
being pledged by the parent company as collateral for debt, Peabody's credit rating having been
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% 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.