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rt- <br />id <br />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 />8/26/2011 <br />Mike Ludlow <br />Peabody Sage Creek Mining, L.L.C. <br />36600 RCR 27 <br />Hayden, CO <br />81639 <br />Dear Mr. Ludlow: <br />Mined Land Reclamation <br />STATE OF COLORADO <br />M i981 <br />RECEIVEM <br />SEP 2 6 2011 <br />Division of Reclamation, <br />Mining and Safety <br />RE: Mesa Gravel Pit, Permit No. M -1982 -036, Transfer of Permit and Succession of Operators <br />Application (S03), Approval <br />If you require additional information, have questions or concerns, please contact me. <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 />On July 26, 2011 the Division of Reclamation, Mining and Safety (Division) approved the Transfer of Permit <br />and Succession of Operators application (SO3) submitted to the Division on July 25, 2011, replacing Sage <br />Creek Coal Company, L.L.C. as the permit holder for the above stated site with Peabody Sage Creek Mining, <br />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 costs. The estimated <br />liability amount of $132,273.00 currently held by the Division, which was calculated during the SO2 <br />application review, is still considered adequate for this site. <br />The terms of SO3 will not be finalized until the Financial Warranty and Performance Warranty are submitted to <br />and approved by the Division. The warranties must be submitted within sixty days of the date of this letter or <br />the application may be denied. Please contact Barbara Coria (ph. 303 - 866 -3567, ext. 8148) at the Division of <br />Reclamation, Mining and Safety Denver Office for submittal of the Financial and Performance Warranties. <br />Office of <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />