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RULE 2 - PERMITS <br />0 2.01 General Permit Requirements <br />'2.01.1 Scope <br />The scope of this section establishes the minimum general requirements for permits required to <br />commence or continue underground coal mining and reclamation operations under the Colorado <br />regulatory framework. The objective of this section is to assure that all operations make timely <br />application for permits, and that all underground coal mining and reclamation operations are <br />conducted only under permits issued in accordance with the requirements of the Colorado Surface <br />Coal Mining Reclamation Act and regulations promulgated thereunder. <br />2.01.2 General Requirements for Existing Operations <br />Peabody Sage Creek Mine (PSCM) is not an existing operation, so this section is not applicable. <br />2.01.3 General Requirements for Permits for All Surface Coal Mining and <br />Reclamation Operations <br />Sage Creek Coal Company, LLC (SCCC) has prepared this application in compliance with the <br />applicable requirements of Rules 2, 3, and 4 of the approved Regulations for the Colorado Mined <br />Land Reclamation Board (CMLRB) for Coal Mining. Throughout various sections of the permit <br />application, "PSCM" and "SCCC" may be used interchangeably when referring to the permit or <br />permit area. <br />• 2.01.4 Permit Requirements for New Surface Coal Mining and Reclamation <br />Operations <br />A complete permit application is being filed in accordance with applicable provisions of Rules 2 <br />and 4. <br />2.01.5 Permit Term <br />With this Permit Application submittal, SCCC is submitting the information necessary for the <br />Colorado Division of Reclamation, Mining, and Safety (CDRMS) to make a finding that SCCC will <br />conduct underground mining operations for the initial permit term of five years in compliance with <br />all applicable regulatory provisions. SCCC has a reasonable expectation that the proposed activities <br />will be initiated within three years of permit approval, and project initiation will not extend beyond <br />the period for diligent development allowed on any Federal coal lease under Section 7 of the <br />Federal Mineral Lands Leasing Act, as amended. At this time SCCC does not anticipate the need <br />for extension of the time allowed for commencement of operations, but wishes to reserve the right <br />to request an extension, if needed in the future, under the applicable regulatory provisions of Rule <br />2.01.5. If initial operations prove technically and economically viable, SCCC anticipates that <br />filings will be made for renewal of the mine permit for additional five -year permit terms under <br />applicable regulatory provisions providing for the right of renewal for successive renewal. <br />2.01.6 Permit Fees <br />• SCCC will pay the permit fee of $2,500 dollars with this permit application. SCCC's permit area is <br />approximately 10,164 acres. <br />2.01 -1 Revision 12/17/09 <br />PSCM Permit App. <br />