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Peabody <br />• Peabody Energy <br />Colorado Coal Resources, LLC <br />September 21, 2009 <br />Ms. Lori Jazwick <br />District Conservationist <br />USDA Natural Resources Conservation Service <br />Steamboat Springs Service Center <br />1475 Pine Grove Rd. Ste 201A <br />Steamboat Springs, CO 80487 -8803 <br />RE: Prime Farmland Status, Peabody Sage Creek Mine <br />Dear Ms. Jazwick: <br />701 Market Street <br />St. Louis, Missouri 63101 -1826 <br />314 - 342 -3400 <br />Sage Creek Coal Company is currently in the process of permitting the Peabody Sage Creek <br />Mine located approximately 9 miles southeast of Hayden, Colorado. This is an underground <br />mine with a 10,169 acre permit area that includes portions of the Seneca II surface mine <br />(closed and under final reclamation bond release) and the rolling hills west of County Road <br />27. The proposed permit area is shown on the enclosed general location map (photo base) <br />and the red outlined area on map 2.04.9 -M1 -Soil Types. <br />The Colorado Division of Reclamation, Mining, and Safety (CDRMS) is currently in review of <br />the permit application for the Peabody Sage Creek Mine. A CDRMS requirement is that a <br />• letter from the NRCS must be included in the application stating that no prime farmland <br />exists in the permit area. Previous contact with the NRCS in this area for other projects <br />determined that no prime farmland existed in this area and the more recent Routt County Soil <br />Survey appears to continue to indicate this. <br />If a negative prime farmland determination continues for the area on and around the <br />proposed Peabody Sage Creek Mine, please provide a letter verifying this status. If you require <br />any additional information or need to discuss this further, please contact me as soon as <br />possible at 928 913 -9205 or at v @peabodyenergy.com I appreciate your <br />assistance in this matter. Please address your response to: <br />Vern Pfannenstiel <br />Peabody Energy <br />Southwest Operations <br />3001 W. Shamrell Blvd. <br />Suite #110 <br />Flagstaff, AZ 86001 <br />Sincerely, <br />Vern Pfannenstiel <br />Manger - Environmental Services West <br />Peabody Investments Corporation <br />• <br />