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INTEROFFICE MEMORANDUM <br />TO: FILE <br />SUBJECT: C2009-087 PEABODY SAGE CREEK MINE TR 1 COST ESTIMATE <br />DATE: 03/21/2011 <br />The Peabody Sage Creek Mine Technical Revision No. 01 (TR-1) calls for the relocation of yet to be <br />constructed coal handling facilities, access roads and coal stockpile sumps at the South Facilities Area <br />associated with C-2009-087. <br />The reclamation cost estimate (RCE) associated with the revision reflect changes in costs of work to be <br />conducted at the South Facilities Area. However, a new task item was included to the RCE to reflect an <br />error in the original Peabody Sage Creek Mine RCE. Based on correspondence received on March 9, <br />2011 from PSCM in regards to the TR-1 RCE, revegetation costs for 448.25 acres associated with Bond <br />Release Block No. 4 (BRB4) was included in the initial estimate, but BR134 has only achieved Phase I <br />bond release based on the Seneca II SL-3 bond release. Due to the fact that a Phase II bond release has <br />not been approved for BRB4, Task 96 added to the PSCM RCE to reflect topsoil distribution costs <br />associated with BRB4. <br />In addition, through surveys conducted by PSCM and validation by the Division, the correct acreage for <br />BRB4 is 462.4 rather than the previous amount of 448.25.