2009-07-30_APPLICATION CORRESPONDENCE - C2009087

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Peabody S e Company JUN 3 0 2009 Divisioi, a, a,.,;ciatnation, Mr. Lane Osborn Mining and Safety Colorado State Land Board - Northwest District P.O. Box 1094 Craig, Colorado 81626 (970.824.2850 C zoo s - 0?7 29515 Routt County Road 27 Oak Creek, CO 80467 970.879.3800 June 24, 2009 Re: Peabody Sage Creek Mine - Landowner Approval/Comments on Postmining Land Use Dear Mr. Osborn: Sage Creek Coal Company (SCCC) has filed an application for a Mining and Reclamation Permit for the Peabody Sage Creek Mine (PSCM) with the Colorado Division of Reclamation, Mining, and Safety. The proposed Mine Permit Area encompasses approximately 10,170 acres, including State, limited Federal, and Fee surface; and State, Federal, and limited Fee coal. The proposed mine would be an underground mine, mining coal from the Wadge Coal Seam, using conventional room and pillar methods for initial exploratory development during the initial 5-year Permit Term. If the initial development work indicates that full-scale mining will be operationally feasible, and market conditions are favorable for further development and mining, operations beyond the initial 5-year Permit Term would involve ongoing mine development and longwall mining. As an underground mine, required surface disturbance would be limited to those lands necessary for the required surface support facilities. Proposed development plans include construction of a mine face-up area, coal stockpile area, and ancillary support facilities, roads, and drainage control structures. Siting plans for these facilities indicate a total of approximately 232 acres of surface disturbance on State surface in T5N, R87W, Sections 2 and 3, as shown on the accompanying map. On completion of mining operations, mine facilities would be demolished and removed (unless approved as permanent facilities to support the postmining land use, at the request of the surface owner), surface disturbance areas regraded, effective drainage reestablished, soil material replaced on the regraded areas, and disturbed areas reseeded with an approved Rangeland seed mixture. All reclamation activities are planned and focused on restoring disturbed areas to a productive, self-sustaining postmining land use as rangeland for grazing, recreation, and wildlife habitat. As the surface owner for most of the planned surface disturbance area, we are requesting your concurrence with, and comments on, the proposed postmining land use of rangeland for grazing, recreation, and wildlife habitat. Please feel free to contact me with any questions, or to discuss. We appreciate your consideration and cooperation in providing thin information. Best regards, For Sage Creek Coal Company Jerry M. Nettleton Environmental Manager RECEP f rl JUN 3 0 2UG9 DWision of Reclamation, Kining and Safety