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PEABODY SAGE CREEK MINING LLC <br />• April 4, 2011 <br />Mr. Jason Musick <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />(303) 866-3567 <br />RE: Peabody Sage Creek Mine (Permit C-2009-087) <br />SL-1, Phase II Bond Release Application <br />Aawn, <br />p.mstuo S"`.ail <br />Mom and u <br />Dear Mr. Musick, <br />Pursuant to Rule 3.03.1, Peabody Sage Creek Mining LLC (PSCM) is hereby submitting a formal Phase II Bond Release <br />Application for lands where successful completion of backfilling, regrading and drainage control has occurred. This <br />application has been prepared and is submitted in accordance with the Colorado Division of Minerals and Geology (DMG) <br />Guideline Regarding Selected Coal Mine Bond Release Issues (April 18, 1995), Rule 3.03 Release of Performance Bonds. <br />Copies of the letters sent to surface owners within and adjacent to the permit boundary, holders of easements on the <br />property, and local government bodies providing written notice to seek release are included in the application package. <br />The "Public Notice" was sent to the Steamboat Pilot for four (4) continuous publications. The Proof of Publication" <br />• will be provided to the Division of Reclamation, Mining and Safety upon receipt from the newspaper. <br />A copy of this application has been sent to the OSM, CDOW and filed in the Routt County Court House for public <br />review. <br />If there are any questions or comments, please contact me at the address below. <br />Sincerely, <br />41'vfichael Ludlow <br />Project Manager <br />Peabody Sage Creek Mine <br />(970) 276-7001 <br />cc: Carl Johnston (OSMRE) <br />James Haskins (CDOW) <br />• <br />Peabody Sage Creek Mine a P.O. Box 2500.36600 RCR 27 <br />Hayden, Colorado 81639 • Telephone (970) 276-7001 <br />