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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br /> <br />1313 Sherman St., Room 215 C <br />RECEIVED <br />Denver <br />Colorado 80203 COLORADO <br />, DIVISION OF <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />MAY 17 2011 RECLAMATION <br />MINING <br /> <br /> ui ;,,aclamation, SAFETY <br /> Mining and Safety <br />REQUEST FOR TRANSFER OF COAL PERMIT AND SUCCESSION OF OPERATORS Bill Ritter, Jr. <br /> Governor <br />I Harris D. Sherman <br /> Executive Director <br />Ronald W. Cattany <br />RECITALS Division Director <br />Natural Resource Trustee <br />A. On August 20 2010 , the Mined Land Reclamation Board of the Colorado <br />Department of Natural Resources (the "State") granted to <br />Sage Creek Coal Company LLC address <br />29515 Routt County Road 27, Oak Creek, CO 80467 <br />("Permittee") permit <br />number C-2009-087 (the "Permit") pursuant to which Permittee has been conducting a mining and <br />reclamation operation known as Peabody Sage Creek Mine in the County of <br />Routt , State of Colorado. <br />B. Permittee wishes to assign the permit to <br />Peabody Sage Creek Mining LLC , address <br />36600 Routt County Road 27, PO Box 250, Hayden, CO 81639 ; as Successor <br />Operator ("Successor") and Successor wishes to become Successor Permittee under the permit. <br />C. Successor understands that the reclamation plan (the "Plan") required by the permit and by applicable <br />State laws and regulations has not been completed and is willing to assume full responsibility for the <br />w completion of the Plan. <br />H. <br />AGREEMENTS <br />Permittee and Successor hereby agree, for their own benefit and for the benefit of the State, such <br />agreements to be effective ipso facto upon the approval by the State of the transfer of the Permit from <br />Permittee to Successor, as follows: <br />1. Successor has inspected the mining and reclamation operations to its entire satisfaction and is <br />fully aware of the condition thereof. Successor understands and accepts all of the conditions of the Permit. <br />2. Successor will complete the reclamation plan, and hereby assumes liability for completing <br />such plan as to all areas heretofore disturbed, as well as to all areas hereafter disturbed. Successor will perform <br />all of the obligations of the Permittee under the Permit which have not heretofore been performed by <br />Permittee. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive mines <br />