2012-04-25_REVISION - C2009087 (2)

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Peabod 41111111111111111111 ENERGY April 25, 2012 Peabody Sage Creek Mining, LLC Mr. Jason Musick Colorado Division of Reclamation Mining & Safety (DRMS) 1313 Sherman Street, Room 215 Denver CO 80203 Re: Peabody Sage Creek Mine No. C- 2009 -087) Technical Revision (TR -03) Facilities and Disturbance Area Update Mr. Musick: Peabody Sage Creek Mine PO Box 250 36600 Routt County Road 27 Hayden, CO. 81639 RECEAVE AN 25 7n17 Dviywit u , r keaamation , Mining and Safety Peabody Sage Creek Mine (PSCM) began constructing the south facilities area in the summer of 2011 according to the approved proposed facilities layout. During and following the 2011 construction season it became apparent that revisions /reconfiguration to the proposed layout were needed in the operations /facilities plan layout and the drainage network. PSCM proposes to expand the current disturbance area specifically associated with the operation of the underground mine. This "new" mining associated disturbance area will increase by 77.2 acres to a total of 355.8 acres to allow construction of an improved drainage system and for potential expansion of the upper pad to accommodate possible future coal handling facilities. The disturbed area reported on the DRMS Application Form, which includes all areas disturbed by the previous Seneca II operations and any additional new area disturbed by PSCM, will increase by 11.8 acres. This technical revision presents an upgraded operations plan that includes; 1) An expansion of the mining related disturbance area 2) An updated facilities layout 3) A revised operational drainage and sediment control plan Both north and south facility maps have been updated to portray the proposed operational layout and to include facilities and structures not currently included in the existing layouts. These updates include: North Facilities — Revised guard shack layout — New water well location — Above ground propane tank locations — Power line locations