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Peabody <br />Peabody Energy <br />Sage Creek Coal Company, LLC' <br />October 19, 2010 <br />Mr. Jason Musick <br />Colorado Division of Reclamation Mining & Safety (DRMS) <br />1313 Sherman Street, Rm 215 <br />Denver CO 80203 <br />iCEdVED <br />29515 Routt County Rd. #27 <br />Oak Creek, CO. 80467 <br />(970) 879-3800 <br />OCT 2 0' Z010 <br />DK6610" ar Reclamation, <br />Mining and SaWY <br />Re: Sage Creek Coal Company - Peabody Sage Creek Mine (Permit No. C-2009-087) Disturbance <br />Boundary Requirements <br />Mr. Musick: <br />During the September complete inspection conducted by the Division it was noted that recently placed <br />disturbance boundary markers delineate the area approved for re-disturbance and not the entire area of <br />approved disturbance. It was noted that disturbance area markers should delineate the entire area of <br />approved disturbance which, based on interpretation from the Division, would include the Seneca II <br />surface mined polygons picked up as a part of the Sage Creek approved mining permit. <br />The Seneca II permit boundary is currently marked as required by Division Rule 4.02.3 for a surface <br />mine. These areas have obtained either phase I or phase II bond release and preparations are being made <br />to apply for additional phase II release and phase III release. Sage Creek is not permitted to disturb any <br />areas outside of the boundary approved for re-disturbance. As such, a requirement to mark individual <br />disturbance polygons from the reclaimed surface mine seems impractical and unnecessary. The total <br />distance of these lines equates to approximately 23.5 miles. Placement of these markers would be very <br />time consuming and expensive initially, and as an ongoing maintenance item. Sage Creek requests one of <br />the following in order of preference: <br />Mark and maintain only the area(s) approved for re-disturbance <br />o Sage Creek is permitted as an underground coal mine and only areas inside the <br />disturbance boundary are permitted to be disturbed <br />o The regulations state that for an underground mine the perimeter of all areas affected by <br />surface operations or facilities should be marked. <br />Maintain the markers currently placed to delineate the former Seneca II permit boundary along <br />with those markers already placed to delineate the area approved for re-disturbance <br />o This would satisfy the requirements for a surface mine if Sage Creek is partially deemed <br />as such