2016-05-02_REPORT - C2009087 (6)

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PEABODY SAGE CREEK MINE - 2015 ANNUAL RECLAMATION REPORT Peabody Sage Creek Mine (PSCM) received permit approval from the Colorado Division of Reclamation Mining and Safety (CDRMS) on August 20, 2010 and began surface disturbance for the construction of an underground mine in the summer of 2011. Development mining commenced at the PSCM in the spring of 2012 using the continuous mining method. Mining in the Wadge Seam extended from four separate entries to approximately 600 feet before mining activities were idled in the fall of 2012. The Mine has remained on care and maintenance status since 2012, with activities limited to monitoring, site maintenance, and revegetation success monitoring for reclaimed areas. The permit area contains 10,164 acres, of which approximately 1,844 acres were previously disturbed by Seneca Coal Company. Within the 1,844 previously disturbed/reclaimed acres, PSCM has utilized or re -disturbed an area of approximately 356 acres for future mining and related activities. Within the existing 356 acre PSCM disturbance area, no additional disturbance occurred in 2015, and no additional areas were disturbed. 2015 DISTURBANCE STATUS AND BOND RELEASE Based on the CDRMS acreage accounting summary provided in the Division's comments on the 2014 PSCM Annual Reclamation Report, a total of 1,844 acres, including both interim program and permanent program areas for the former Seneca Mine (1,775 acres) and the new Sage Creek Mine (69 acres), have been disturbed within the Sage Creek Permit Area, including: • 1,628.8 interim program and permanent program acres previously permitted under the Seneca II Mine Permit • 146.4 Seneca II Phase III -released acres approved to be re -disturbed under the PSCM Permit as new permanent program acres • 68.8 new permanent program acres approved to be disturbed under the PSCM Permit For the permitted Sage Creek Mine operations, the following summarizes the relevant permit and permitted disturbance area acreages Permit Area 10,164.0 acres Currently Permitted Disturbance Area 356.4 acres (287.6 to be re -disturbed, 68.8 new disturbance) PSCM submitted SL -01 and received approval (09/05/13) for Phase II bond release in 2013 on 445.8 acres of interim program and permanent program lands that had received Phase I bond release under SL -01 and SL -04 for the Seneca II Mine (C-80-005). PSCM also submitted and received approval (01/30/14) for Phase I release on 67.4 acres, and final bond release (Phase I1/III) on 68.8 acres of pre - law areas under SL -02. In 2014, PSCM submitted SL -03 for Phase III bond release on 1,028 acres of permanent program lands that had received Phase I/II bond release under SL -01, SL03, SL -04, and SL - 05 for the Seneca II Mine. The SL -03 Phase III bond release was approved for 1,026 acres in May 2015. The following table summarizes the remaining reclamation liability acreages. 2015 ARR