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DIVISION OF RECLAMATION, MINING AND <br />Department of Natural Resources <br />1313 Sherman 5t., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303)866-3567 <br />FAX: (3031832-8106 <br />STATE OF COLORADO <br />NES <br />RECEIVED0C. 0 <br />HAY 17 2011 <br />;_,.v wmLAl els ,.aciamation. <br />Mining and Safety <br />DIV151014 OF <br />RECLAMATION <br />MINING <br />---- &— <br />SAF ETY <br />REQUEST FOR TRANSFER OF COAL PERMIT AND SUCCESSION OF OPERATORS Bill Ritter, Ir. <br />Govemor <br />I. Harris 0. Sherman <br />Executive Director <br />RECITALS Ronald W. [crony <br />Division Director <br />Natural Resource trustee <br />A. On August 20 2010 <br />the Mined Land Reclamation Board of the Colorado <br />Department of Natural Resources (the "State") granted to <br />Sage Creek Coal Company LLC , address <br />29515 Routt County Road 27, Oak Creek, CO 80467p <br />(" crmiltcc") permis <br />number 0-2009-087 —(the "Permit") pursuant to which Pcrmittcc has been conducting a mining and <br />reclamation operation known as Peabody Sage Creek Mine in the County of <br />Routt , State of Colorado. <br />B. Pernlittcc wishes to assign the permit to <br />Peabody Sage Creek Mining LLC , address <br />36600 Routt County Roast 27, PO Box 250, Hayden, CO 81639 , as Successor <br />Operator ("Successor") and Successor wishes to become Successor Permittee under the permit. <br />C. Successor understands that the reclamation pian (the "Plan") required by the permit and by applicable <br />State laws and regulations has not been completed and is willing to assume full responsibility for the <br />completion of the Plan. <br />U. <br />AGREEMENTS <br />Permittee and Successor hereby agree, for their own benefit and for the benefit of the State, such <br />agreements to be effective ipso facto upon the approval by the State of the transfer of the Permit from <br />Permittee to Successor, as follows - <br />I . Successor has inspected the mining and reclamation operations to its entire satisfaction and is <br />fully aware of the condition thereof, Successor understands and accepts all of the conditions of the Permit. <br />2. Successor will complete the reclamation plan, and hereby assumes liability for completing <br />such pian as to all areas heretofore disturbed, as well as to all areas hereafter disturbed. Successor will perform <br />al I of the obligations of the Pennitlec under the Permit which have not heretofore been performed by <br />Permittee. <br />Office of Office of <br />Mined land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />