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8/2/2016 State.co.us Executive Branch Mail -Re: Twentymile Coal, LLC- Foidel CReek Mine (C-82-056), Review of Borehole Closure Costs for SI -2 <br />was noted that the increase in hours was primarily for "Drill Rig and Labor" and "Water Truck". The hours <br />ranged from a decrease of 60% to an increase of 129%. Of the 45 discrete closure activities, the <br />equipment/labor hours stayed the same or decrease for 3 activities, increased up to 50% for 8 activities, <br />increase between 50% and 100% for 12 activities, and increased over 100% for 22 activities. <br />Invoices for recent drilling and borehole closure activities (MR272 and MR275 corresponding to Borehole <br />WC -005 through WC -022) were reviewed, and based on a limited sampling and comparison with the updated <br />(06/16) CDRMS costs, the costs were in the same range, but generally somewhat less. Unfortunately, the <br />boreholes for which I was able to find actual costs generally fell in the lower range of the noted increase in <br />equipment/labor costs (up to 50% increase), so I'm not sure they are representative, however I don't have <br />actual costs to assess some of the activities for which the increases are greater. I would ask that you review <br />the labor hours for those activities highlighted on the attached calculation forms (increases greater than <br />100%) for possible adjustment. <br />Best regards, <br />Jerry <br />Jerry M. Nettleton <br />Manager Environmental Affairs <br />Twentymile Coal, LLC <br />29515 RCR27 <br />Oak Creek, Colorado 80467 <br />970.870.2712 <br />jnettleton@peabodyenergy.com <br />E-mail Disclaimer: <br />The information contained in this e-mail, and in any accompanying documents, may constitute confidential and/or legally privileged information. The <br />information is intended only for use by the designated recipient. If you are not the intended recipient (or responsible for the delivery of the message <br />to the intended recipient), you are hereby notified that any dissemination, distribution, copying, or other use of, or taking of any action in reliance on <br />this e-mail is strictly prohibited. If you have received this email communication in error, please notify the sender immediately and delete the message <br />from yo u r syste m. <br />i <br />hftps://mail.google.com/mail/u/0/?ui=2&ik=e29129fcb5&vi ew=pt&search= i nbox&th=1564bc5dc1 cc9cc8&si m 1=1564bc5dc1 cc9cc8 2/3 <br />