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l- 19$2-a3(-= <br />comN conwny Seneca Coal Company <br />(October 12, 2010 <br />Mr. Dustin Czapla <br />to Division of Reclamation, Mining and Safety <br />101 South 3`d, Suite 301 <br />Grand Junction, CO 81501 <br />(970) 242-5025 <br />RE: Mesa Gravel Pit (Permit M-82-036) <br />Succession of Operators Application (S02) <br />Reclamation Costs Update Confirmation .-- <br />Mr. Czapla, <br />RECEIVED <br />OCT 13 2010 <br />GRAND JUNG i ?.)N FIELD OFFICE <br />DIVISION OF <br />RECLAMIAPON MIHNG & SAFETY <br />Seneca Coal Company (SCC) has reviewed your letter of October 8, 2010 and has reviewed the permit <br />document (Exhibits E and L). We don't believe there was an error in 1998; the topsoil replacement cost <br />was for reclaiming 5 acres which included the haul road and open pit. <br />We assume the updated calculation for the topsoil replacement of 18" on 15 acres is based on the most <br />current Annual Reclamation Map (2009-2010). We have no problem with the new cost estimate of <br />$132,273. This letter serves as confirmation of the stated financial warranty amount so that the DRMS <br />can approve S02. As soon as S02 is approved, Sage Creek Coal Company will forward the financial <br />warranty documents. <br />If there are any questions, please contact me (Roy Karo) at 970-276-5217. <br />Sincerely, <br />Roy A. Karo <br />Reclamation Manager <br />cc: Mike Ludlow (Sage Creek Coal Co.) <br />George Wagner (Peabody Energy) <br />Seneca Coal Company • P.O. Box 670 . Hayden, Colorado 81639 <br />Telephone (970) 276-6219 • FAX (970) 276-5222