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substitute bo <br />s within 90 days. See Colorado Mined Land Reclamation Board Regulations § <br />3.02.4(2)(e)( ii); New Mexico Administrative Code § 19.8.14.1410(F); and Wyoming Land <br />Qualify Division Coal Rules and Regulations, Chapter 11, Section 5. <br />In the case of Peabody Energy, reports indicate that while the company self -bonds mining <br />operations across the U.S., the company no longer meets the financial criteria for self -bonding <br />under 30 C.F.R. § 800.23. As detailed in recent reports, the company fails as follows: <br />• Peabody no longer has an "A" rating or higher, as issued by both Moody's <br />Investor Service and Standard and Poor's Corporation, rendering the company <br />ineligible for self -bonding under 30 C.F.R. § 800.23(b)(3)(i). As disclosed in a <br />December 2015 Moody's report, the company's corporate family rating is now <br />"CaO," which "reflects [Moody's] expectation of continued deterioration in the <br />company's credit metrics[.]" I Further, as of July 2015, Peabody's rating with <br />Standard and Poor's was `BB -."2 <br />• Peabody's total liabilities to net worth ratio is greater than 2.5, rendering them <br />ineligible for self -bonding under 30 C.F.R. § 800.23(b)(3)(ii) and (iii). According <br />to Peabody's most recent filings, the company's total liabilities were reported to <br />be $10,102,800,000 and the company's net worth, as indicated by stockholders' <br />equity, was reported to be $869,900,000, yielding a liabilities to net worth ratio of <br />11.63.3 <br />Feb. 11, 2016 <br />Total Liabilities $10,102,800,000 <br />Net Worth $869,900,000 <br />Liabilities to Net Worth Ratio 11.63 <br />• The company's total amount of outstanding self -bonds exceed 25% of their <br />tangible net worth in the U.S., rendering them ineligible for self -binding under 30 <br />C.F.R. § 800.23(d). According to Peabody's most recent Form 10-K, as of the end <br />of 2014, Peabody's total amount of self -bonding amounted to $1,361,400,000.4 <br />Moody's Inve ors Service, "Moody's downgrades Peabody's ratings (CFR to Caa3), outlook negative," website <br />available at htt ://www.mood s.com/research/Mood s -down rades-Peabod s-ratin s-CFR-to-Caa3-outlook- <br />2 StreetInsider.c m, "UPDATE: Standard and Poor's Downgrades Peabody Energy (BTU) to `BB-'; Outlook to <br />Stable," website available at <br />httn://www.stre tinsider.com/Credit+Ratines/UPDATE%3A+S%26P+DownLrades+Peabodv+EnerLv+(BTU)+ <br />Peabody Energy, "Peabody Energy Announces Results For the Year Ended December 31, 2015," available at <br />Attached as Exhibit 1. <br />4 Peabody Energy, "2014 10-K," available at <br />