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Peabody Sage Creek Mining <br />Page 4 <br />June 22, 2016 <br />acres reported to have obtained Phase I and II bond release will need to be reduced accordingly. <br />The number of acres reported to have obtained Phase III bond release should be accurate. Please <br />review and update the Phase I and II bond release acres accordingly. <br />Table 13.1 of the 2015 annual reclamation report provides an estimate of the number of acres that <br />have Phase I, II and III liability remaining to be released. This table does not appear to reflect the <br />actual on the ground acreage where Phase I, II and III Liability remains because it assumes all of <br />the new acres approved to be disturbed have been disturbed through 2015. The Division believes <br />a better formula would be: <br />o Total Disturbed Acreage from SII (-) Total Bond Release Acreage (accounting for <br />redisturbance) + on the ground disturbance through the reporting year = Acres of <br />Remaining Phase (I, II or III) Bond Release Liability through the reporting year. <br />This concludes the Division's review of the 2015 Annual Reclamation Report for the Peabody Sage <br />Creek Mine. The Division requests that the items noted in bold be addressed by July 29, 2016. If you <br />have any questions feel free to contact me at (303) 866-3567, extension 8120. <br />Sincerely, <br />� COYK- <br />Jared Ebert <br />Environmental Protection Specialist <br />