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PeabodH <br />Peabody Energy <br />Colorado Coal Resources, LLC <br />October 8, 2008 <br />Mr. Tom Kaldenbach <br />Environmental Protection Specialist <br />Colorado Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />RE: Revised Baseline Hydrology Work Plan - Cow Camp Project <br />Dear Mr. Kaldenbach: <br />701 Market Street <br />St. Louis, Missouri 63101-1826 <br />314-342-3400 <br />REEF VED <br />OCT 10 2008 <br />Division of ;,idmation, <br />Mk ft and ft* <br />As we discussed during our conversation this morning, Colorado Coal Resources (CCR) is not <br />planning to install monitoring wells at the Cow Camp Project exploration borehole ccu25 during <br />2008. Review of recently acquired geologic information in the northwest portion of the proposed <br />Cow Camp underground coal reserve indicates the depth to the Wadge Coal is much greater than <br />originally anticipated at ccu25. CCR designed the monitoring wells for this location for more <br />shallow conditions, and believes it would be prudent to postpone installing monitoring wells at <br />ccu25 due to the risk of failed well completions at depths greater than 2,000 feet, and because <br />mining of the reserves in this area is not anticipated for at least five years or longer. <br />In order to gather adequate baseline groundwater information for permitting the first five years of <br />mining proposed at the Cow Camp reserve, CCR plans to construct three monitoring wells at <br />exploration borehole ccu23 within the next several weeks. The wells are to be completed in the <br />Wadge overburden, Wadge Coal, and Wadge underburden formations. These wells will be <br />monitored monthly for water levels, and quarterly for water quality following the same <br />monitoring plans currently being conducted at the existing monitoring wells. Each well will also <br />be tested for collecting aquifer parameters. CCR is confident the wells will provide adequate <br />baseline groundwater quality and quantity data to characterize groundwater within the Cow Camp <br />coal reserve where the first five-years of underground mining is being planned. <br />Please don't hesitate to contact me via phone at 929.913.9218 or by email at <br />jcochrangpeabodyener y com if you have any questions. <br />Si e ly, <br />hn Cochran <br />anager Environmental Hydrology <br />Peabody Investments Corporation <br />C: Brian Dunfee (PIC) <br />Jerry Nettleton (TCC) <br />Vern Pfannenstiel (PIC)