PERMFILE55602

• Permit No: C1980003
• IBM Index Class Name: Permit File
• Doc Date: 12/17/2002
• Section_Exhibit Name: 1996 Tab 1 Hayden Gulch Mine Permit Summary
• Media Type: D
• Archive: No

. HAYDEN GULCH MINE PERMIT SUMMARY
On September 25, 2002, Hayden Gulch Temrinal, Inc. (HGTI), a subsidiary of Peabody Energy
Corporation, entered into a Transfer of Coal Permit and Succession of Operators Agreement with
H-G Coal Company (HGCC). Tlvs Transfer Agreement is being conducted to expedite title release
of the Hayden Gulch Mine pazcel from HGCC to HGTI. The Hayden Gulch Mine pazcel was
excluded from an Agreement for Sale of Real Property, dated August 2, 1995, and First Amendment
to Agreement for Sale of Real Property, dated September 18, 1995.
The Hayden Gulch Mine was included in HGCC's mine pernilt application, which resulted in
issuance of Permit No. C-80-003 by the Colorado Division of Minerals and Geology (then, the
Colorado Mined Land Reclamation Division) on January 4, 1981. HGCC has successfully renewed
the permit on four occasions: January 4, 1987, January 4, 1992, January 4, 1997 and January 4, 2002.
There are no outstanding permitting or enforcement proceedings related to the Hayden Gulch Mine
area at the present time.
The Hayden Gulch Mine is an inactive surface coal mine undergoing reclamation and closure located
approximately I1 miles south of Hayden, Colorado in Routt County. The mine is located in Sections
30 and 31, Township 5 North, Range 88 West of the 6~ Principal Meridian. The original permit area
for the mine facility included approximately 1,269 acres. Of this, approximately 365 acres were
within the disturbance azea. Active mining occurred between 1978 and 1986. In November 1987,
HGCC submitted a Notice of Intention for Temporary Cessation to the CDMG, which was
followed by several technical revisions (TRs) to the permit pertaining to final reclamation and mine
closure plans.
In September 1987, HGCC submitted a Phase I bond release request for the estimated 315 acres east
of Routt County Road 53 that had been reclaimed between 1978 and 1986. That request was
approved by CDMG in Mazch 1988. The 42 acre office/shop/wazehouse facility area was reclaimed
in 1987. A Phase I bond release application for the office/shop/warehouse facility area was
submitted in July 1996; it was approved by CDMG in June 1997.
In February 1998, HGCC submitted a Phase II/Phase III bond release request for the 357 acres that
had been reclaimed between 1978 and 1987 and, which had been released from Phase I
requirements. The CDMG approved the Phase II/Phase III bond release request in June 1999. The
Phase II/Phase III release (SL-03) covered both mine-pit and office facility areas; excluded were
three shmb enclosure areas (Parce1003, Parcel HG-8 and Parcel E) and a slump area at the former
highwall.
HGCC revised the permit under TR-68, which was submitted to CDMG in response to the 1999
Mid-term Permit Review, to incorporate permit changes as a result of the Phase II/Phase III bond
release. The permit azea was changed to include the three shrub enclosure areas and the sltuttp area;
these four parcels cover 8.9 acres. Other changes to the permit were a new legal description of the
revised pemut boundary, a slump area monitoring program, the cessation of the water monitoring
program and an explanation of the bond release status of the two permanent ponds. Outstanding
reclamation activities identified in Phase II/Phase III bond release SL-03 aze limited to establishing
vegetation on the four parcels and monitoring ground stability at the slump azea.
The permit application for Permit No. C-80-003 consists of the following three parts:
1) Seven volumes that pre-date sepazation of the Hayden Gulch Mine from the Hayden Gulch
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