2011-02-11_REPORT - C1981044 (2)

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Peabody BTU Empire Company, LLC 29515 Routt County Road #27 Oak Creek, CO 80467 970.879.3800 Mr. James Stark Environmental Protection Specialist Division of Reclamation, Mining, and Safety 1313 Sherman Street - Room 215 Denver, Colorado 80203 (303) 866-3567 X8145 RFCr_1` E0 FEB 11 2011 Division of Redar }ation, Mining and Sa1111V February 10, 2011 RE: BTU Empire Company, LLC. - Williams Fork Mines (Permit C-81-044),2010 Annual Reclamation Report (ARR) Dear Mr. Stark: Enclosed are duplicate copies of the 2010 Annual Reclamation Report for the Williams Fork Mines (formerly Eagle 5 & 9 Mines). The Mine property remains in Temporary Cessation, and the only new disturbance or reclamation completed during 2010 was removal of the rock-dust tank located near the Shop/Warehouse (moved to Twentymile). Site maintenance and monitoring activities continued, as in previous years, under the Temporary Cessation status. BTU Empire Company, LLC (BTUEC) completed final reclamation grading, drainage reestablishment, soil material replacement, and revegetation seeding of approximately 17.1 acres, encompassing the No. 9 Portal Area and adjacent Refuse Disposal Area, in May 2009. Reclaimed areas were reseeded with the approved seed mixture that fall, and areas are inspected several times each year for vegetative reestablishment. Ongoing site maintenance and monitoring activities continued. During 2006, the frequency of surface and ground water monitoring was increased to provide for updated hydrologic information, in the event that Peabody decides to pursue further exploration and feasibility evaluations for the Empire property, and the more intensive hydrologic monitoring continued during 2007-through 2010. Maintenance activities included inspection and clean-out of drainage structures (as needed), and focused weed- and control activities. During 2007, there was an oil pipeline rupture, which resulted in a localized oil spill on the southern portion of BTUEC's property (outside of mine permit area). BTUEC Staff coordinated with the pipeline operator (Rocky Mountain Pipeline) on containment, clean-up, and remediation. Inspection of the affected area during 2008 indicated effective removal of oil contamination, restoration of effective drainage (several intermediate catch basins removed, but final catch basin remains in-place), placement of imported soil materials, and initial vegetative reestablishment. Visual inspection of this area indicates effective vegetative establishment. No rodent-control activities occurred during 2010. The 2005-2007 control efforts were effective in significantly reducing the ground squirrel population, and while rodents are still observed on the property,