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PQabody <br />701 Market Street, Suite 700 <br />Saint Louis, MO 63101 <br />314-342-3400 <br />.Tune 7, 2007 <br />Mr. Daniel Hemandez <br />Colorado Division of Reclamation, Mining and Safety <br />1313 Sherman St., Room 215 <br />Denver, CO 80203 <br />Phone: (303) 866-3567 <br />G~~~~O <br />~00~ <br />~~~o ~ G\5 `~`~o. <br />ON`5~~~~9a~a <br />M <br />Re: Twentymile Coal Company -Notice of Intent to Explore <br />Dear Mr. Hemandez: <br />Twentymile Coal Company (TCC), a wholly owned subsidiary of Peabody Energy <br />(Peabody) is submitting this exploration Notice of Intent (NO)) to provide for exploration access, <br />drill pad development, drilling and sampling of up to 2 coreholes and subsequent reclamation of <br />the associated exploration disturbance, as shown on the accompanying map. The proposed <br />exploration activities, which are planned for summer and fall of 2007 and permitted through <br />12131/2008 to accommodate any unanticipated weather or drilling delays, will provide TCC with <br />important supplemental geologic and coal quality information needed to assess coal recovery <br />potential and economic feasibility for possible future mining of coal reserves associated with the <br />TCC property. This NOI submittal duplicates information concurrently provided to the State of <br />Colorado, Board of Land Commissioners (State Lands) under an Exploration Permit Application <br />and Routt County Board of County Commissioners through an Administrative Use Permit <br />Application. <br />This NOI submittal includes the following: <br />• Transmittal letter <br />• Parts I-III of the CDRMS NOI form and corresponding explanatory text, tables, figures, <br />and maps <br />• Appendix A -Surface owner listing and access agreements <br />• Appendix B -Legal description of proposed exploration area <br />• Appendix C -Cultural Resource Investigations <br />• Appendix D -Colorado Division of Wildlife consultation report <br />The proposed exploration program involves: <br />• Construction of 2 drill-pads (each approximately 100 x 100 ft) <br />• Completion, sampling, and geophysical logging of 2 coreholes <br />• Abandonment (plugging and sealing) of coreholes and drillholes, and reclamation of the <br />associated exploration disturbance <br />