2010-01-25_APPLICATION CORRESPONDENCE - C2009087

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NA2?dq Peabody Energy January 21, 2010 Mr. Tom Kaldenbach Division of Reclamation Mining and Safety 1313 Sherman St., Room 215 Denver, CO 80203 .?v V JAN 2 5 2010 p?vision of an d Salead n, DAintn9 701 Market Street St. Louis, Missouri 63101-1826 314-342-3400 RE: Adequacy Response and Permit Application Update package, Sage Creek Coal Company, Peabody Sage Creek Mine Dear Mr. Kaldenbach: On behalf of Sage Creek Coal Company (SCCC), Peabody Energy hereby transmits three (3) copies of an adequacy response and permit application update package for the proposed Peabody Sage Creek Mine (PSCM). The original permit application package (PAP) was submitted to the Division on June 12, 2009. The PAP was deemed complete on June 30, 2009. The Division's preliminary technical adequacy review was issued on August 28, 2009 with additional adequacy comments forwarded by the Division on September 11 and September 25, 2009. Colorado Division of Wildlife comments were forwarded to SCCC on January 4, 2010. The enclosed response package addresses all adequacy comments in detail. Responses to adequacy comments are addressed in the attached SCCC response document and correspondingly in revised or updated PSCM PAP sections. As appropriate, these revised or updated PAP sections are referenced in the adequacy response document. Major changes to the mine and operations plan, facilities, and reclamation plan have occurred since the original PAP submittal and these are reflected in the enclosed package. These changes and the response to adequacy comments have resulted in major context and organizational changes to the original PAP submittal including complete replacement of many of the sections and maps. Several new maps and Exhibits have also been added. Detailed insertion instructions have been developed to aid in updating the PAP. The adequacy comment responses and insertion instructions for the updated PAP materials are included as separate attachments to this letter. The mine plan contains no references to longwall mining as only facilities construction, mine development, and mine operations using continuous miners and room and pillar methods are planned for the current life of mine (5 year term). If mining conditions, coal quality and acquisition, and customer markets continue to prove favorable, future mining may be expanded. In that event, a complete revision package addressing all applicable rules and regulations will be submitted to the Division for review and approval. SCCC requests timely review of the PSCM PAP update and response to adequacy comments. Questions pertaining to the PAP update materials and responses may be directed to either Vern