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I. PROCEDURES AND SUMMARY OF THE REVIEW PROCESS
<br />Peabody Sage Creek Mining, LLC applied for partial Phase III bond release of 422 acres under the
<br />Colorado Surface Coal Mining and Reclamation Act following reclamation of the Peabody Sage Creek
<br />Mine. The mine is located in Routt County, Township 5 North, Range 87 West, all or portions of
<br />Sections 1, 2, 3, 4, 5, 8, 9, 10, 11, 12, 13, 14, 15, 16, 21 and 22; Township 6 North, Range 87 West, all or
<br />portions of Sections 27, 28, 29, 32, 33, 34, 35 and 36.
<br />Reclamation History of Bond Release Area
<br />The total permit area of the Peabody Sage Creek Mine (PSCM) is presently 10,164 acres, of which
<br />1,766.39 acres were previously disturbed by, and portions reclaimed by, Seneca Coal Company (SCC)
<br />under the Seneca II Mine (C-1980-005). The total disturbance acreage of the Peabody Sage Creek Mine
<br />approved to be disturbed by PSCM is 1,912.80 aces including the previously disturbed portions. The
<br />Division has processed six previous bond release applications for Seneca II Mine (SL -1, SL -2, SL -3, SL -
<br />4, SL -5, and SL -6), four of which (SL -1, SL -2, SL -3, SL -4) having been associated with disturbed areas
<br />that presently exist within the current Peabody Sage Creek Mine permit. The bond release history of the
<br />Seneca II mine relevant to the PSCM is shown in Table 1.
<br />Table 1- Bond Release History
<br />In 2010, Permit Revision No.2 (PR -2) for the Seneca II Mine was approved, which reduced the size of
<br />the original permit area of the Seneca II Mine to accommodate the Peabody Sage Creek Mine. Based on
<br />the final decision of PR -2, the Seneca II Mine had a permit area of 271.20 acres. The Peabody Sage
<br />Creek Mine assumed liability of the remaining 1,766.39 disturbed area acres (1,697.6 permanent
<br />program lands and 68.79 pre -law lands).
<br />Upon issuance of the Peabody Sage Creek Mine Permit on August 20, 2010, the Division at that time
<br />determined the approved disturbed area was 2076.70 acres composed of. (1) the 1766.39 disturbed area
<br />acres transferred from the Seneca II Permit, (2) 52.60 acres of newly proposed disturbed area, and (3)
<br />257.71 acres of disturbed area that had previously been granted Phase III release under the Seneca II
<br />Mine.
<br />C-2009-087 Page 3 of 14
<br />Seneca II Mine C-1980-005
<br />Bond Release History Prior to the Approval of Permit Revision No.2
<br />Interim and Permanent Program Areas
<br />Total
<br />Disturbance
<br />Phase I
<br />Released
<br />Phase I Phase II
<br />Remaining Released
<br />Phase II
<br />Remaining
<br />Phase III
<br />Released
<br />Phase IIII
<br />Remaining
<br />SL -1
<br />1968.8
<br />1795.4
<br />173.4
<br />0
<br />1968.8
<br />0
<br />1968.8
<br />SL -2
<br />1968.8
<br />NA
<br />NA
<br />NA
<br />NA
<br />NA
<br />NA
<br />SL -3
<br />1968.8
<br />0
<br />173.4
<br />1213.1
<br />755.7
<br />0
<br />1968.8
<br />SL -4
<br />1968.8
<br />135.3
<br />38.1
<br />0
<br />755.7
<br />0
<br />1968.8
<br />Pre -Law Areas
<br />SL -1
<br />326.5
<br />259.1
<br />67.4 0
<br />326.5
<br />0
<br />326.5
<br />SL -2
<br />326.5
<br />0
<br />67.4 257.71
<br />68.79
<br />257.71
<br />68.79
<br />SL -3
<br />326.5
<br />NA
<br />NA NA
<br />NA
<br />NA
<br />68.79
<br />SL -4
<br />326.5
<br />NA
<br />NA NA
<br />NA
<br />NA
<br />68.79
<br />In 2010, Permit Revision No.2 (PR -2) for the Seneca II Mine was approved, which reduced the size of
<br />the original permit area of the Seneca II Mine to accommodate the Peabody Sage Creek Mine. Based on
<br />the final decision of PR -2, the Seneca II Mine had a permit area of 271.20 acres. The Peabody Sage
<br />Creek Mine assumed liability of the remaining 1,766.39 disturbed area acres (1,697.6 permanent
<br />program lands and 68.79 pre -law lands).
<br />Upon issuance of the Peabody Sage Creek Mine Permit on August 20, 2010, the Division at that time
<br />determined the approved disturbed area was 2076.70 acres composed of. (1) the 1766.39 disturbed area
<br />acres transferred from the Seneca II Permit, (2) 52.60 acres of newly proposed disturbed area, and (3)
<br />257.71 acres of disturbed area that had previously been granted Phase III release under the Seneca II
<br />Mine.
<br />C-2009-087 Page 3 of 14
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