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Peabody <br />Peabody Energy <br />Peabody Sage Creek Mine, LLC. <br />March 29, 2011 <br />Mr. Lane Osborne <br />Colorado State Land Board - Craig District Office <br />P.O. Box 1094 <br />555 Breeze Street <br />Craig, CO. 81626 <br />Re: Peabody Sage Creek Mine (Permit No. C-2009-087) Landowner notification <br />Mr. Osborn, <br />PO Box 250 <br />36600 Routt County Road 27 <br />Hayden, CO 81639 <br />Under the requirements of the Mining and Reclamation Permit, approved and issued by the Colorado <br />Division of Reclamation, Mining, and Safety, Peabody Sage Creek Mine (PSCM) is providing this <br />notification of anticipated future underground coal mining activities. Section 4.20.2 (Public Notice) of <br />the Regulations of the Colorado Mined Land Reclamation Board for Coal Mining requires the following: <br />"The mining schedule shall be distributed by mail to all owners of property and residents within the area <br />above the underground workings and adjacent areas. Each such person shall be notified by mail at least <br />six months prior to mining beneath his or her property or residence. The notification shall contain, in <br />minimum " <br />• Identification ofspecifte areas in which mining will take place; <br />• Dates of mining activities that could cause subsidence and affect specific structures; and <br />• Measure to be taken to prevent or control adverse surface effects. " <br />PSCM expects to initiate construction activities for the mine portals and associated ancillary structures <br />and facilities as soon as ground conditions allow. It is anticipated that coal extraction from mine <br />development activities could begin as early as the I" of October 2011. At this time, only continuous <br />miner (CM) development operations are permitted and approved, for which no subsidence would be <br />anticipated. PSCM will continue CM development according to the approved mine plan into 2012 and <br />2013 (see Figure 1 - Approved Mine Plan). <br />Please don't hesitate to contact me if you have any questions or concerns. I can be reached at (907) 276- <br />7003 or at scowman(dbpeabodyenergy.com. As always, we appreciate very much your continued <br />cooperation. <br />Best regards, <br />B. Scott Cowman <br />Senior Environmental Specialist <br />Sage Creek Coal Company <br />Peabody Sage Creek Mining, LLC.