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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 />February 12, 2013 <br />B. Scott Cowman <br />Peabody Sage Creek Mining, LLC <br />P.O. Box 250 <br />Hayden, CO 81639 <br />Re: Amendment Requests, New Cost Estimates, X- 1983 - 159 -05, X- 1983 - 169 -08, X- <br />1985- 159 -09, X- 1987 - 168 -20, X- 1988 - 168 -22, X- 1990 - 168 -23, X- 1993 - 168 -27, X- 1994 - 214 -00, <br />X-1996-219-00, X-1996-219-01, X-1998-219-02, X-1998-219-03, and X- 1999 - 205 -06 <br />Dear Mr. Cowman: <br />STATE OF COLORADO <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta Pineda <br />Director <br />The Division has reviewed Peabody Sage Creek Mining, LLC's (PSCM) amendment requests, received <br />January 23, 2013, to extend the expiration date of the above mentioned NOIs to January 1, 2016. The <br />Division is currently researching and validating the current bond instruments associated with each NOI <br />and will contact PSCM at a future date with the findings. The Division's decision for each NOI <br />amendment request is listed below. <br />X- 1983 - 159 -05, AM -1 <br />Amendment request has been approved. Final required reports and a bond release request have been <br />submitted. The Division will inspect the sites this spring. <br />X- 1983 - 169 -08, AM -1 <br />Amendment request has been approved. PSCM has stated that reports will be submitted and subsequently, <br />the Division will inspect the sites this spring. <br />X- 1985- 159 -09, AM -1 <br />Amendment request has been approved. The Bureau of Land Management will seal and reclaim the <br />remaining monitoring wells in 2013 -2014 and the Division will inspect subsequently. <br />X -1987- 168 -20, AM -1 <br />Amendment request has been approved. The new cost estimate for reclamation is $483.46. <br />X- 1988 - 168 -22, AM -1 <br />Amendment request has been approved. The new cost estimate for reclamation is $8,426.91. <br />X- 1990 - 168 -23, AM -1 <br />Amendment request has been approved. The new cost estimate for reclamation is $27,832.61. <br />X- 1993 - 168 -27, AM -1 <br />Amendment request has been approved. The new cost estimate for reclamation is $4,579.30. <br />X- 1994 - 214 -00, AM -3 <br />Amendment request has been approved. The current cost estimate is up -to -date in the amount of <br />$10,725.74. PSCM has stated that they will work with the landowners this year to transfer or reclaim the <br />remaining four wells. <br />Office of <br />Mined Land Reclamation <br />Page 1 of 2 Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />