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ROt\j ° rio United States Department of the Interior <br />y� <br />OFFICE OF SURFACE MINING <br />�Rcr� <br />Uf <br />Reclamation and Enforcement <br />�Wcslern Region Office <br />1999 Broadway, Suite 3320 <br />Denver, CO 80202-3050 <br />JUL 0 2 2918 <br />Jim Stark, Director <br />Office of Mined Land Reclamation <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203-2273 <br />RE: Approval of Partial Phase III Bond Release, Sage Creek Mine, Permit No. C-2009-087, SL -4, <br />DRMS Proposed Decision and Findings of Compliance, June 21, 2018 <br />Dear Mr. Stark, <br />This letter acknowledges the Office of Surface Mining (OSMRE), Denver Field Division's <br />(DFD) receipt and review of the above Phase III Bond Release Proposed Decision document <br />prepared by the Division of Reclamation Mining and Safety dated June 21, 2018. DFD agrees <br />with the findings and decision document and hereby provides OSM concurrence for the above <br />bond release action in accordance with 30 CFR 740.15 (d) (3), and 30 CFR 906.30, Article IX, <br />Section 24, of the State -Federal Cooperative Agreement. <br />DRMS's Proposed Decision documents the applicant's compliance with the approved Colorado <br />regulatory program at Rule 3.03.2. This bond release application originally requested Phase III <br />release on 422 acres associated with permanent program lands. DRMS is proposing to approve <br />Phase III bond release for 418 acres. <br />DRMS conducted the bond release inspection on August 3, 2017. OSMRE participated in the <br />bond release inspection. Representatives from the Colorado State Board of Land Commissioners <br />and the Routt County Planning Department also attended. The Bureau of Land Management <br />(BLM) was unable to attend the inspection. By letter dated June 29, 2018, the BLM provided its <br />concurrence with SL -4 (attached). OSMRE interprets the BLM's concurrence to mean that <br />Peabody Energy's Sage Creek Mine is in compliance with all applicable BLM coal lease <br />stipulations. <br />OSMRE agrees that Peabody Sage Creek Mining, LLC has met or exceeded the requirements for <br />Phase III bond release on the 418 acres of land as described in DRMS's proposed decision and <br />findings document. Although the reclamation cost estimate is currently $2,842,960.49, the <br />Division holds a performance bond in the amount of $3,356,429.28 for the Sage Creek Mine. <br />The Division now proposes to release $234,374.51 in bond liability and has determined that the <br />remaining bond is sufficient to assure completion of the reclamation plan if the work had to be <br />performed by the Division or through independent contractors in the event of forfeiture. <br />OSMRE concurs with the proposed bond release amount. <br />