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STATE OF COLORADO <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 />March 27, 2012 <br />COLORADO <br />Q I V I S I O N O F <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />B. Scott Cowman Loretta E. Pineda <br />Director <br />Peabody Sage Creek Mining, LLC. <br />PO Box 250 <br />Hayden, CO 81639 <br />RE: NOI X-2006-227-01,180-day Report, Abondonment Report, Final Reclamation Report, <br />and Bond Release Request SL -1 <br />Dear Mr. Cowman, <br />The Division has received the 180 -day report, Drillhole Abandonment report, and Final Reclamation <br />report for the Notice of Intent CX- 2006 - 227 -01. The reports are in compliance and satisfy rules <br />2.02.6(3)(a), 4.07.3(3), and 2.02.6(3)(b) respectfully. It is noted that of the 33 holes permtted, only 8 <br />holes were drilled. Holes JCC001, JCC003S, JCC004, JCC005S, JCC006, JCC007, JCC007S, and <br />JCCOIOS were drilled, sealed and reclaimed. <br />Attached with the Final Reclamation Report is your request for coal exploration bond release for NOI X- <br />2006- 227 -01. We currently hold a bond for this NOI in the amount of $149,644.00. <br />So that we may properly evaluate the success of the remaining reclamation at this site, we will conduct <br />the bond release inspection within 30 days and weather permitting. We will contact you to schedule a <br />time when our inspection will be convenient for you. <br />Thank you for the timely submittal. <br />If you have any questions please feel free to contact me at (303)866 -3567 ext 8134 <br />Sincerely, <br />Jason Musick <br />Environmental Protection Specialist <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />