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<br />STATE OF COLORADO <br /> <br /> <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br /> <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br /> <br />June 26, 2012 John W. Hickenlooper <br /> <br /> <br />Governor <br /> <br /> <br />Mike King <br /> <br />Executive Director <br />B. Scott Cowman <br /> <br /> <br />Peabody Sage Creek Mining LLC <br />Loretta E. Pineda <br /> <br />P.O. Box 250 Director <br /> <br />36600 Routt County Road 27 <br /> <br />Hayden, CO 81639-0250 <br /> <br /> <br /> <br /> <br />Re: Peabody Sage Creek Mine (Permit No. C-2009-087) <br /> <br /> Bond Release No. 1 (SL-01) <br /> <br /> Adequacy Review <br /> <br /> <br /> <br /> <br />Dear Mr. Cowman: <br /> <br />The Division received Peabody Sage Creek Mining’s (SCC) application for a Phase II Bond Release (SL- <br />01) on April 6, 2011. The application was determined to be complete on May 19, 2011. Throughout the <br />review process it was determined that issues with the cover standard of the mountain brush reference area <br />required an alternative approach to meet adequacy. This alternative approach was submitted to the <br />Division on April 27, 2012. During the review process, Peabody Sage Creek Mine submitted Technical <br />Revision No. 4 (TR-4). A proposed Decision for TR-4 was issued and as of the date of this letter is in the <br />public comment period. Based on the proposed decision to approve the TR-4 application, the Division <br />has the following adequacy comments pertaining to the SL-1 application: <br /> <br />1. The TR-4 application proposed to change the area of the Peabody Sage Creek Mine disturbance <br />boundary. This disturbance boundary change effects the acreage numbers, bond release liability <br />amounts, and the bond release lands proposed to be released with SL-1. Please revise the SL-1 <br />application to reflect the revised acreage amounts, bond liability amounts requested, and the lands <br />proposed to be released based on the approved TR-4 application. Specifically: <br /> <br /> Pages, 1, 3, Attachment G Bond Release Calculation, Map 1, and Map 2 <br /> <br />Please feel free to contact me with any questions at (303) 866-3567 ext 8134. <br /> <br />Sincerely, <br /> <br />Jason D. Musick <br />Environmental Protection Specialist <br /> <br />Office of Office of <br /> <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />