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conducted during the spring, within and around substations and conveyors using GlyStar + (a generic Roundup <br />substitute), Throttle, and Dicamba to eliminate all vegetation, as a fire - safety and MSHA consideration. As part <br />of our ongoing land management programs. TC conducted managed livestock grazing activities (approximately <br />1,800 steers) on the bond - released areas. Due to drought conditions, both the number of steers and the duration <br />of grazing were reduced to prevent adverse impacts on the vegetation communities. TC and Peabody's <br />Corporate Environmental Group also initiated a range assessment program to evaluate range condition and <br />provide a tool for ongoing evaluation of stocking rates and range management. <br />Permit approvals during 2012 resulted in a net decrease in the calculated reclamation liability and surety <br />coverage of $183,867, to a total of $9,829,303, at year -end, summarized as follows: <br />TR12 -79, Bond Reduction (- $245,467) <br />MR12 -260, 16 -Left Road Modifications ($8,992) <br />MR12 -261, 2012 WMD Exploration Program ($28,200) <br />MR12 -262, Loadout Slope Stabilization ($6,812) <br />MR12 -263, Portal Waste Transfer Station ($774) <br />MR12 -264, Concrete Protective Structures ($16,822) <br />Attached are copies of the standard form (CDRMS) Annual Reclamation Report for 2012. If you have any <br />questions or require further information, please feel free to contact me directly at (970) 870 -2712. <br />Best regards, <br />Twentymile Coal LC <br />Jerry M. ► eton <br />Manag vironmental Affairs <br />Attachments <br />cc: Mike Berdine /TCC <br />"7‘Rzt- <br />