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PEABODY SAGE CREEK MINING LLC <br />0 <br />March 31, 2011 <br />Upper Yampa Water Conservancy District <br />P.O. Box 880339 <br />Steamboat Springs, CO 80488 <br />To Whom It May Concern; <br />Peabody Sage Creek Mining LLC, 36600 CR 27, Hayden, CO 81639, (CDMG Permit No. C-2009-087, <br />approved June 8, 2010) is requesting release of Phase II bond liability on 462.4 acres of its reclaimed lands <br />(originally Seneca II Mine area) at the Peabody Sage Creek Mine A surety bond in the amount of $5,959,990 <br />is currently in place and $966,743 is being requested for release. Those portions of the permit area for which <br />Phase II bond release is requested were revegetated from the beginning of mining through 2005 in accordance <br />with the Colorado Division of Reclamation, Mining and Safety (CDRMS) rules and regulations. <br />The Peabody Sage Creek Mine is located approximately nine (9) miles southeast of Hayden, Colorado. The <br />specific area to which this bond release request applies is included in portions of the following sections located <br />within the permit area: <br />TSN. R87W <br />L? <br />Section 1: All <br />Section 2: All <br />Section. 11: NE'/, N'/2NW'/, SE'/NW'/, and NE'/SE% and Portions of SE'/ SE'/, <br />and NW'/ SE'/ <br />Section 12: All <br />Section 13: N'/zN%2N'/2 <br />T6N, R87W <br />Section 35: W'h, W'/zE'/z, and Portions of SE'/NE/4, and E'/zSE'/ <br />Section 36: Portions of S'/zS'/z <br />All west of the 6`h Principal Meridian <br />• <br />The USGS 7.5 Minute Quadrangle Maps for Milner and Mt. Harris contain the described affected area. A copy <br />of the bond release application is available for public inspection at the Hayden Public Library, 201 E. Jefferson <br />Avenue, Hayden, Colorado 81639. Written comments or objections or requests for public hearing or informal <br />conference concerning this application may be submitted to, and additional information obtained from, the <br />Colorado Division of Reclamation, Mining and Safety, 1313 Sherman Street, Room 215, Denver, Colorado <br />80203-2273, (303) 866-3567. Comments must be received within 30 days of the last publication of this notice <br />or within 30 days of the onsite inspection, whichever is later. Published on (four consecutive weeks). <br />Sincerely, <br />- Mike Ludlow <br />Project Manager <br />Peabody Sage Creek Mine <br />36600 CR 27 <br />Hayden, CO 81639 <br />Peabody Sage Creek Mine • 36600 CR 27 • Hayden, Colorado 81639 <br />Telephone (970) 276-7001