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7. On the basis of evidence submitted by the applicant and received from other state and <br /> federal agencies as a result of the Section 34-33-114(3) compliance review required by the <br /> Colorado Surface Coal Mining Reclamation Act, the Division finds that Peabody Sage <br /> Creek Mining, LLC does not own or control any operations which are currently in <br /> violation of any law,rule, or regulation of the United States, or any State law, rule, or <br /> regulation, or any provision of the Surface Mining Control and Reclamation Act or the <br /> Colorado Surface Coal Mining Reclamation Act(2.07.6(2)(g)). <br /> 8. Peabody Sage Creek Mining, LLC does not control and has not controlled mining <br /> operations with a demonstrated pattern of willful violations of the Act of such nature, <br /> duration, and with such resulting irreparable damage to the environment as to indicate an <br /> intent not to comply with the provisions of the Act (2.07.6(2)(h)). <br /> 9. The Division finds that surface coal mining and reclamation operations to be performed <br /> under this permit will not be inconsistent with other such operations anticipated to be <br /> performed in areas adjacent to the permit area (2.07.6(2)(0). <br /> 10. The Division estimates the reclamation liability for mining operations to be$4,384,631. <br /> The Division currently holds a$3,681,766 performance bond for the Peabody Sage Creek <br /> Mine. Peabody Sage Creek Mining, LLC will need to submit an additional performance <br /> bond prior to issuance of a renewed permit (2.07.6(200)). <br /> 12. Based on information provided in the application the Division has determined that an <br /> alluvial valley floor does exists within the permit or adjacent area for Annand Draw and <br /> Scotchman Gulch watersheds. This determination is based on information provided by <br /> the applicant in an evaluation conducted in 2009. The Division has determined alluvial <br /> valley floors exist in the watersheds of Fish Creek, Grassy Creek, and Little Grassy <br /> Creek. The approved mining operations will not interrupt, discontinue, or preclude <br /> agricultural activities in the three watersheds. Additional specific findings are provided <br /> by the operator in Section B, XII and Exhibit No. 2.06.8-E-1. (2.07.6(2)(k) and <br /> 2.06.8(3)(c)). <br /> The Division has made a negative determination regarding the presence of prime farmland <br /> within the permit area. The decision was based on data provided that demonstrates that <br /> no prime farmland mapping units are found within the permit area (2.07.6(2)(k)). <br /> 13. The Division hereby approves the post-mining land use of the operation. It was <br /> determined that upon completion of mining operations, mine facilities would be <br /> demolished and removed (unless approved as permanent facilities to support the post- <br /> mining land use at the request of the surface owner), surface disturbance areas regraded, <br /> effective drainage reestablished, soil materials replaced on the regraded areas and <br /> disturbed areas reseeded with an approved Rangeland seed mixture. All reclamation <br /> activities are planned and focused on restoring disturbed areas to a productive, self- <br /> sustaining post-mining land use as rangeland for grazing,recreation, and wildlife habitat. <br /> (2.07.6(2)(1)). <br /> Page 13 of 27 <br />