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Fr DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />/26/2011 <br />Mike Ludlow <br />Peabody Sage Creek Mining, L.L.C. <br />36600 Routt County Road #27 <br />Hayden, CO <br />81639 <br />RE: Red Rock Pit, Permit No. M- 1978 -315, Transfer of Permit and Succession of Operators Application <br />(SOI), Approval <br />Dear Mr. Ludlow: <br />On July 26, 2011 the Division of Reclamation, Mining and Safety (Division) approved the Transfer of Permit <br />and Succession of Operators application (SO1) submitted to the Division on July 5, 2011, replacing Routt <br />County as the permit holder for the above stated site, with Peabody Sage Creek Mining, L.L.C. <br />In an effort to ensure the Financial Warranty remains adequate to reclaim the above referenced site per the <br />requirements of the approved Reclamation Plan, the Division has reviewed the reclamation cost estimate (copy <br />enclosed). Staff calculations estimate the cost to reclaim the above referenced site to be $31.550.00. <br />The terms of SOl will not be finalized until this bond amount is submitted to and approved by the Division. <br />Please contact Barbara Coria (ph. 303 - 866 -3567, ext. 8148) at the Division of Reclamation, Mining and Safety <br />Denver Office for submittal of the Financial and Performance Warranties. <br />If you require additional information, have questions or concerns, please contact me. <br />Office of Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />Mined Land Reclamation <br />STATE OF COLORADO <br />AMC <br />�1- i478-3 <br />R CEINgin <br />JUL 29 2011 <br />Division of :Uciarnati ^n, <br />Mining a �.p E <br />{~,fir, .� va 6ty <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />—&— <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />