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C Zooq o?7 , <br />Kaldenbach, Tom <br />From: Hernandez, Daniel <br />Sent: Wednesday, March 10, 2010 12:14 PM <br />To: Kaldenbach, Tom - <br />Subject: Peasbody Sage Creek Mine "federal mine" designation <br />Hi Tom - <br />I spoke with Carl Johnston yesterday regarding DRMS's designation of the Peabody Sage Creek Mine (PSCM) as a <br />"federal" mine. Carl said that because the current version of the PSCM application proposes coal mining activities at the <br />surface over a non-relinquished federal coal lease within the proposed mine's permit area, some sort of federal mine <br />plan approval is needed if not already issued. <br />According to Carl, federal mine plan approval exists for the existing road within the Seneca II Mine permit area that Sage <br />Creek Coal Company (SCCC) proposes to enlarge under the PSCM permit, and that currently exists over a non- <br />relinquished federal coal lease (according to Carl, this previously-approved federal mine plan approval is associated <br />somehow with the Yoast Mine). However, also according to Carl, no federal mine plan approval exists for the proposed <br />underground development waste pile that would overlie the same non-relinquished federal coal lease. <br />As I mentioned earlier, it seemed to me that the reasoning behind Dave Berry's decision to designate the PSCM a <br />"federal" mine was his understanding that some sort of federal mine plan approval would be associated with the <br />activities proposed in the application. Even if the proposed underground development waste pile were removed in a <br />future version of the application, the mine would still be a "federal" mine (as I understand Dave's reasoning) due to <br />existing federal mine approval for the existing road within the Seneca II permit proposed for modification by SCCC that <br />overlies a non-relinquished federal coal lease. <br />It is possible (even likely, according to Carl) that if the proposed UG development waste pile is removed from the PSCM <br />application, OSM might not need to modify the previously-approved federal mine plan approval, nor issue a new federal <br />mine plan, for the mine road. The mine would nevertheless still be a "federal" mine, however, due to the existence of a <br />previously-approved federal mine plan (or mine plan modification) for that road. For OSM to be able to make this call <br />with the utmost certainty, however, they need to have a copy of the PSCM application. <br />Therefore, if you have not already done so, would you mind asking Sage Creek Coal Company to submit a copy of the <br />Peabody Sage Creek Mine application to OSM and the other federal agencies referenced in the directions on our permit <br />application form? <br />Thanks, <br />Dan <br />Daniell. Hernandi z <br />Daniel I. Hernandez <br />Senior Environmental Protection Specialist <br />Colorado Division of Reclamation, Mining and Safety <br />1313 Sherman St, Room 215 <br />Denver, CO 80203 <br />New Phone Number: 303-866-3567 ext 8126 <br />Fax: 303-832-8106 <br />Website: www.mining.state.co.us