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Peabody Twentymile Coal Company REC~ii/~D June 17, 2004 Janet Binns -Environmental Protection Specialist ~~~ 2 ~ 2~~4 Division of Minerals and Geology Oivisien of Minerals and Geology 1313 Sherman Street, Room 215 Denver, Colorado 80203 (303) 866-3567 29515 Routt County Road #27 Oak Creek, CO 80467 970.879.3800 RE: BTU Empire Corp., Eagle Mines (Permit No. C-81-044) -Permit Renewal (RN-04), Request for Extension of Decision Date Dear Ms. Binns: We respectfully request that the decision date for the pending Permit Renewal (RN-04) for BTU Empire Corporation's Eagle Mines be extended to September 30, 2004, in order to allow Peabody Energy, as the new owner of BTU Empire Corporation (Empire), sufficient time to resolve an outstanding right-of--entry issue for the inactive Eagle Mines property. It is our desire and intent to resolve this issue in a timely manner and to the mutual benefit of all parties involved. We feel that the requested extension would be to the benefit of the Colorado Division of Minerals and Geology (CDMG), the landowners, and Empire, and would avoid the additional complications inherent in a premature decision based on the current situation. The following summarizes our rationale and justification for this request. As you are aware, ownership of Empire was recently purchased by BTU Worldwide, Inc., awholly-owned subsidiary of Peabody Energy Corporation, from R.A.G. American Coal Company (RAG). In addition, I assumed responsibilities as Environmental Supervisor in mid-May. It has come to my attention that the 2003 Permit Renewal Application (RN-04) for the Eagle Mines remains outstanding, pending resolution of aright-of--entry issue for a small area (approximately 2-3 acres) of surface disturbance and previously undermined lands currently owned by the Brad, Ray, and Lisa Barker Trust (Bazker). The subject surface disturbance was reclaimed during the 4th quarter of last year and the only activities remaining for this area aze any required future maintenance and monitoring. The mining that occurred under the Bazker lands was room and pillar mining completed during the 1970's under the prior ownership of the Silengo/Ziegler Coal interests. Given the intervening time period of over 25 years and that the room and pillar mining involved limited pillaz recovery (based on available documentation) any potential subsidence over the mined azeas would have occurred by now. RAG's legal counsel, Mr. Cory Bromley, submitted a letter and supplemental materials, requested by the CDMG, in January (1/21/04) and March (3/31/04) of this year to show its continued right-of--entry for reclamation purposes based on regulatory requirements and previous legal precedent. It was our understanding that the Colorado Attorney General's (AG's) Office was reviewing this legal documentation and would provide an opinion on its validity. While we have not received formal notification from the AG's Office, it is our understanding, from informal communications, that the AG's Office does not believe that a continuing right-of--entry exists and is recommending a partial permit denial to address the outstanding right-of--entry issue.