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for the purpose of conducting exploration and reclamation (attach supporting document if applicable): SURFACE OWNED BY COTTONWOOD LAND COMPANY (A PEABODY SUBSIDIARY), RIO-RO-MO LAND COMPANY, AND J.A.K.T.Y. LIMITED -ACCESS FOR PARCELS NOT OWNED BY PEABODY THROUGH EXISTING SURFACE ACCESS AND USE AGREEMENTS (COPIES ATTACHED) MINERALS OWNED BY THE UNITED STATES OF AMERICA -MINERAL ACCESS THROUGH BLM EXPLORATION LICENSE COC-69881 (COPY ATTACHED) 4. Attach a description of the land to be affected, For example: The condition of the topsoil, the general hydrology, type of vegetation and topogaphy, Rule 2.02.2(2) (c). SEE ATTACHED 5. Describe Exploration Activities; Rule 2.02.2(2)(g): SEE ATTACHED a. Attach a narrative description of methods and equipment to be used to conduct coal exploration activities. Include drilling operations, surface blasting, road or access route construction, excavated earth and debris disposal activities. Also describe measures to be taken to protect the environment: topsoil salvage, diversion of overland flow, settling ponds, etc. b. Specifically address: 1) Location and acreage of areas where topsoil will be salvaged and stored 2) How much earth moving will be needed for new roads or drill sites, if any 3) What seed mix (type and amount) will be used for re-vegetation 4) Depth ofdrillholes 5) Whether aquifers will be encountered (include supporting references) 6) Precise description of how drill holes will be sealed and plugged in accordance with Rule 4.07 7) Whether holes will be developed as water wells and, if so, the well permit issued by the Colorado Division of Water Resources SEE ATTACHED 6. Attach a statement with appropriate references from the relevant State or Federal agencies or published sources, which determines that the exploration and reclamation described will not jeopardize the continued existence of an endangered or threatened species listed pursuant to Section 4 of the Endangered Species Act of 1973 (16 U.S.C. 1533) or the Nongame, Endangered or Threatened Species Conservation Act (Section 33-8-101 et sue. C.R.S. 1973) or result in the destruction or adverse modification of critical habitat of those species. (Rule 2.02.2(2)(h)) SEE ATTACHED (NOTE DISCUSSION FOR ITEM 6) 7. Does the applicant wish any parts of this Notice to be considered CONFIDENTIAL? Yes. If yes, the material should be attached as a separate document and cleazly marked "Confidential". Justification for requesting the confidentiality must be included with the request. Note: Rule 2.02. G:\Envimnmental\EXPLORATION WORK\EXPLR 2006 BIG ELK\Big Elk 2006 NOI App. Form.doc Page 3 of 19