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Peabody Sage Creek Mining, LLC <br /> Page 5 <br /> April 3, 2015 <br /> selenium levels is not justified or warranted in an update to the PHC,please provide <br /> a justification for the exclusion of such discussion. <br /> 26. In accordance with Rule 2.05.6(3)(b)(v),based on any updated PHC section of the permit <br /> discussed in the previous item,please update the hydrologic reclamation plan specifically <br /> addressing any adverse hydrologic consequences resulting from elevated selenium levels. <br /> 3.03.2; Determination of the Bond Amount <br /> 27. The Division updated the reclamation cost estimate for the site. The last substantial update to the <br /> reclamation cost estimate occurred during the Midterm Review(MT 1) of the permit conducted in <br /> 2013. Since then,there have been several revisions and two bond release(SL1 and SL2) <br /> approvals that have changed the liability amount. The reclamation cost estimate enclosed with <br /> this letter takes into account the approved revision and bond release applications. The current <br /> liability for the site is $3,636,389.73. The Division's updated reclamation cost estimate liability <br /> amount was calculated to be $3,753,199.27. The Division is currently processing, and has yet to <br /> approve,the SL3 bond release application. Given this,the liability associated with the SL3 bond <br /> release application is included in the updated cost estimate. Please review the cost estimate. <br /> Other <br /> 28. The Division received two comment letters. They are enclosed. History Colorado submitted a <br /> letter dated February 10, 2015. The Division of Water Resources submitted a letter dated March <br /> 2,2015. Please review these letters and address any concerns. <br /> If you have any questions please feel free to contact me at(303) 866-3567, extension 8120 or at <br /> Jared.Ebertna,state.co.us <br /> Sincerely, " <br /> a <br /> Jared Ebert <br /> Environmental Protection Specialist <br /> Enclosures: <br /> 1. Reclamation Cost Estimate for the Peabody Sage Creek Mine;RNI,April 1, 2015 <br /> 2. History of Colorado Comment Letter, Dated February 10, 2015. <br /> 3. Division of Water Resources letter, Dated March 2, 2015. <br />