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Peabody Sage Creek Mine (C-2009-087) <br />Introduction <br />MT- 2 <br />This document presents the results of the Midterm Review of the Peabody Sage Creek Mine permit, <br />conducted by the Colorado Division of Reclamation, Mining and Safety (Division). The Peabody Sage Creek <br />Mine is owned and operated by Peabody Sage Creek Mining, LLC. This Midterm Review was conducted <br />to fulfill the requirements of the Colorado Surface Coal Mining Reclamation Act (Act), and Rules 2.08.3, <br />2.06.2(9), 2.06.3(4), 2.06.5(3), 2.06.7(5), and 3.02.2(4) of the Rules and Regulations of the Colorado Mined <br />Land Reclamation Board for Coal Mining (Rules), which were promulgated to implement the Act. <br />Rule 2.08.3 requires that the Division conduct a review of each permit issued not later than the middle of <br />the permit term. Based on this review, for good cause shown, the Division may require reasonable <br />revisions to, or modifications of, the permit provisions to ensure compliance with the Act and Regulations. <br />Rules 2.06.2, 2.06.3, 2.06.5, and 2.06.7 require that during the midterm review, where applicable, <br />experimental practices, mountaintop removal variances, variances from approximate original contour <br />(AOC), and variances from contemporaneous reclamation, respectively, be reviewed by the Division. <br />Rule 3.02.2(4) requires that the Division review the amount of performance bond liability and the terms <br />of acceptance of the bond every 2% years. <br />This Midterm Review consisted of a detailed review of the Peabody Sage Creek Mine permit application <br />package and previous Division findings of compliance to ensure that the proposed operation is in <br />compliance with the Rules and Act. The Division also reviewed all subsequent revisions and stipulation <br />responses to ensure that all permit commitments and conditions were being followed. Problems and <br />observations from past Division inspection reports were also considered. <br />The document has seven sections. <br />• Section I contains a brief description of the mine history and the surrounding environment. <br />• Section II contains a summary of permit actions since the last Permit Renewal. <br />• Section III is a summary of the Division's review of the active stipulations attached to the permit. <br />• Section IV is a summary of the review of any previously approved experimental practices, <br />mountaintop removal variances, variances from approximate original contour (AOC), and <br />variances from contemporaneous reclamation. <br />• Section V summarizes any enforcement actions issued since the permit was last renewed, and <br />the current status of any actions that were issued. <br />• Section VI is a summary of the review and a discussion of any problems identified as a result of <br />this review that are required to be resolved. <br />• Section VII is a summary of the review of the reclamation cost estimate and the performance <br />bond(s) held by the Division. <br />Page 2 of 12 <br />