2009-01-20_PERMIT FILE - X200923100

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?r c . s Hydro-Environmental Solutions, Inc. hydrology, water quality and environmental consulting January 16, 2009 Mr. Jason Musick Colorado Division of Reclamation, Mining and Safety 1313 Sherman Street, Room 215 Phone: (303) 866-3567 Re: Sage Creek Project - 2009 Notice of Intent to Explore Dear Mr. Musick: via FedEx #865302156142 RECEIVED 'JAN 2 0 'i'.009 ®ivisiolt ?..._... _tjuon, Mining and Safety Sage Creek Holdings, LLC (Sage Creek), a wholly-owned subsidiary of Peabody Energy Corporation (Peabody) is submitting this exploration Notice of Intent (NOI) to provide for exploration access, drill pad development, drilling and sampling of up to 15 coreholes and subsequent reclamation of the associated exploration disturbance in an area designated as the Sage Creek Project. The 2009 exploration program is a continuation of previous exploration activities permitted in 2007 and 2008 - the 2007 and 2008 activities were identified as the Cow Camp Project. The project area is shown on Map 1, Sage Creek 2009 Exploration Program, in the accompanying NOI Supplemental Information. The 2009 exploration program will provide Sage Creek additional geologic and coal quality information needed to assess coal recovery potential and economic feasibility for possible future mining of coal reserves associated with the proposed Sage Creek Mine. This NOI submittal duplicates information concurrently provided to the USDI-Bureau of Land Management under a Federal Coal Exploration/Reclamation Plan notice, the State of Colorado, Board of Land Commissioners under an Exploration Permit Application and Routt County Board of County Commissioners through an Administrative Use Permit Application. This NOI submittal includes the following: • Transmittal letter • Parts I-III of the CDRMS NOI form and corresponding supplemental text, tables, figures, and maps • Surface access and coal control agreements • Legal description of proposed exploration area • Cultural resource report • Colorado Division of Wildlife consultation report The proposed exploration program involves: Construction of 15 drill pads (Sage Creek will minimize the disturbance footprint for each exploration site; the maximum area of disturbance will be approximately 100 x 100 ft, however, in all likelihood, the actual extent of disturbance will be limited to the immediate area around the drill rig and adjacent mud pits) Completion, sampling, and geophysical logging of 15 coreholes 571 e Street, Suite B P.O. Box 772996 Steamboat Springs, CO 80477 970-846-5112