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October 16, 2012 <br />Peabody Sage Creek Mining, LLC <br />PO Box 250 <br />36600 Routt County Road 27 <br />Hayden, CO. 81639 <br />Mr. Jason Musick <br />Colorado Division of Reclamation Mining & Safety (DRMS) RECEIVED <br />• 1313 Sherman Street, Room 215 <br />Denver CO 80203 OCT 1 C 2012 <br />Division of Reclamation <br />Mining & Safety <br />RE: Peabody Sage Creek Mine (Permit No. C- 2009 -087) Minor Revision (MR15 -12) <br />Dewatering Well Additional Option <br />Mr. Musick: <br />Peabody Sage Creek Mining (PSCM) is submitting two (2) copies of the requested updates to the <br />Mine Permit (C- 2009 -087) as MR -15 for the addition of another option for dewatering the spoils <br />and reducing the water inflow into the underground mine workings. Two options are being <br />considered to remove the water; only one option will be implemented. The first option was <br />approved in MR 11 -12. <br />Water from the Seneca II reclamation spoils is filtering into the mine, and, to reduce the water <br />pressure, another option was created. This option involves drilling a horizontal borehole into the <br />highwall of the portal area. The water from this well will flow into the portal sumps and be <br />pumped along with other mine drainage into FA -D8. <br />Ditch FA -D8 shows little change when the additional water is added. The total depth of the <br />water flow in the ditch will only increase by 0.01 foot and the velocity will increase by only 0.05 <br />feet. The Sedcad run for this ditch is included with this cover letter as an attachment. It was <br />compared to the Sedcad run in Exhibit 2.05.3 -E2. Because such a negligible change in created <br />in ditch FA -D8, it is anticipated that there will be little to no changes to the Lower Sump <br />capacity. <br />Once you have had opportunity to review this submittal package, please feel free to contact me at <br />970 - 276 -7003 with any questions or comments. <br />Best regards, <br />B. Scott Cowman <br />Senior Environmental Specialist <br />