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PC
<br />ORGY
<br />Peabody Sage Creek Mining, LLC
<br />Upper Yampa Water Conservancy District
<br />P.O. Box 775529
<br />Steamboat Springs, CO 80477
<br />RE: Peabody Sage Creek Mine (Permit No. C-2009-087)
<br />Partial Phase III Bond Release Request (SL4)
<br />To Whom It May Concern;
<br />Peabody Sage Creek Mme
<br />295,15 Ret City Read 27
<br />Oak Creek, CO 7
<br />January 16, 2017
<br />Peabody Sage Creek Mining, LLC (PSCM) would like to inform you, as a land owner, local Government,
<br />municipality, or water conservation district with in the locality of the Peabody Sage Creek Mine (Mining
<br />Permit No. C-2009-087, approved June 08, 2012), that PSCM intends to request release of Phase III bond
<br />liability on 422 acres of reclaimed lands at the Peabody Sage Creek Mine. A Corporate Surety bond in the
<br />amount of $3,356,429.28 is currently in place, of which PSCM is requesting $225,000.00. The portion of the
<br />mine for which Phase III bond release is requested was topsoiled and revegetated between 1978 and 2005
<br />throughout the mining operation and in accordance with the Colorado Division of Reclamation Mining and
<br />Safety (CDRMS) rules and regulations.
<br />The Peabody Sage Creek Mine is located approximately nine (9) miles southeast of Hayden, Colorado. The
<br />permit boundary encompasses a large portion of lands that were originally mined as a part of Seneca II
<br />prior to the 2010 approval of the Peabody Sage Creek Mining Permit. The specific area within the current
<br />permit boundary to which this Phase III bond release request applies follows below:
<br />T6NR87W:
<br />Section 35 - Portions of: SWSW, SESW, SWSE, and SESE
<br />Section 36 - Portions of: SWSW, SESW, SWSE, and SESE
<br />T5NR87W:
<br />Section 1 - Portions of. L6, L7, L8, NENW, SWNW, SENW, NWSW, NESW, SWSW, SESW, NWNE, NENE,
<br />SWNE, NWSE, and SWSE
<br />Section 2 - Portions of: L1, L2, L3, L4, NWNW, NENW, SWNW, SENW, NWNE, NENE, SWNE, SENE,
<br />NESW, SESW, NESE, NWSE, and SESE
<br />Section 11 - Portions of: NWNE, SWNE, SENE, NESE, and SESE
<br />Section 12 - Portions of: NENW, SENW, SWNW, NWNE, SWNE, SENE, NESW, NWSW, SWSW, SESW,
<br />NWSE, NESE, and SWSE
<br />Section 13 - Portions of: NWNW, NENW, and NWNE
<br />*All west of the 6th Principal Meridian, totaling approximately 422 acres
<br />The USGS 7.5 Minute Quadrangle Maps for Milner and Mt. Harris contain the described affected area.
<br />Pursuant to Rule 3.01.1, a permittee may request Phase III Bond Release upon completion of all surface
<br />mining operations in accordance with the approved reclamation plan, and the final inspection and
<br />procedures of Rule 3.03.2 have been satisfied, achieving postmining land use of Rangeland. Phase III shall
<br />not be released prior to a ten year liability period specified for vegetation responsibility and success. The
<br />Peabody Sage Creek Mining, LLC • 29515 Routt County Road #27 •Oak Creek, Colorado 80467
<br />T..I....l....... /07A\47A.I7.14
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