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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 />COLORADO <br />D I V IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />March 28, 2012 John W. Hickenlooper <br />Governor <br />Mike King <br />Scott Cowman Executive Director <br />Peabody Sage Creek Mining, LLC. Loretta E. Pineda <br />Director <br />PO Box 250 <br />Hayden, CO 81639 <br />RE: NOI CX- 2006 - 214 -01, Bond Release SL -1 <br />Dear Mr. Cowman, <br />The Division has received your request for coal exploration partial bond release for NOI X- 2006 -214- <br />01. We currently hold a bond for this NOI in the amount of $58,517.00. It is noted that the requested <br />bond release is for drilled and reclaimed sites 02, 05, 06, and 08. The remaining six sites (01, 03, 04, 07, <br />09, and 10) have yet to be drilled and will remain bonded. A Division cost estimate determined that the <br />amount of bond required to adequately reclaim the six remaining sites is $34,042.00. Pending a site <br />inspection, the amount of liability that can be released is $24,475.00. <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 />