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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 />August 27, 2012 <br />B. Scott Cowman <br />Peabody Sage Creek Mining LLC <br />P.O. Box 250 <br />36600 Routt County Road 27 <br />Hayden, CO 81639 -0250 <br />RE: 2011 Annual Reclamation Report Review <br />Peabody Sage Creek Mine (Permit No. C- 2009 -087) <br />Dear Mr. Karo, <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 />Loretta E. Pineda <br />Director <br />The Division has completed its review of the above referenced report received on 02 April 2012. The <br />Division finds the 2011 Annual Reclamation Report in compliance of the following Rules: <br />Rule 2.04.13(1) — Received 02 April 2012. Please see comments below. <br />Rule 2.04.13(1)(a) — The cover of the ARR includes the name of the permittee, the address, and the <br />permit number. <br />Rule 2.04.13(1)(b) — The ARR identifies 62.7 disturbed acres permitted to be disturbed during calendar <br />year 2011. <br />Rule 2.04.13(1)(c) — The ARR identifies 0.0 new backfilled and graded acres during calendar year 2011. <br />Rule 2.04.13(1)(d) — The ARR identifies 0.0 new topsoiled acres during calendar year 2011. <br />Rule 2.04.13(1)(e) — The ARR identifies 0.0 acres which were permanently revegetated during calendar <br />year 2011. <br />Rule 2.04.13(1)(f) — The ARR identifies 0.0 acres which were seeded during calendar year 2011. <br />Rule 2.04.13(2) — The following additional information was provided in accordance with the approved <br />PAP: the topsoil monitoring including tosil balance for salvaged topsoil, wildlife monitoring, the <br />Noxious Weed Control Program activities conducted in 2011, grazing activities conducted on the <br />Peabody Sage Creek Mine, and information on past sediment pond surveys. Pond 004 is surveyed every <br />two years, with the most recent survey being conducted in 2010 and Ponds 002 and 003 every 5 years. <br />The next survey will be conducted in 2012 and 2015 accordingly. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />