2013-07-22_GENERAL DOCUMENTS - C2009087

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inspections, the Division finds that Peabody Sage Creek Mining, LLC. has achieved its approved Phase II cover standard, replaced topsoil in accordance to its approved permit, and established permanent vegetative communities that support the post - mining land use in accordance with the approved reclamation plan. The Division finds that the information Peabody Sage Creek Mining, LLC. provided demonstrating that the reclaimed lands are not contributing suspended solids to streamflow or runoff outside the permit area in excess of pre - mining levels is valid. V. PROPOSED DECISION Based on the observations above, the Division proposes to approve Peabody Sage Creek Mining, LLC's request for a partial Phase II bond release for the Peabody Sage Creek Mine. This proposed decision will release the applicant from Phase II reclamation liability for topsoil replacement on the entirety of Bond Release Block No. 4, totaling 445.8 acres. Currently, the acreage approved to be disturbed at the Peabody Sage Creek Mine is 1697.60 interim program and permanent program acres previously permitted under the Seneca II Mine permit, 68.79 pre -law acres previously permitted under the Seneca II Mine permit, 79.56 Phase III - released acres approved to be re- disturbed under the Peabody Sage Creek Mine permit as new permanent program acres, and 66.85 new permanent program acres approved to be disturbed under the Peabody Sage Creek Mine permit, for a total of 1912.8 disturbed area acres. Upon approval, the remaining Phase I, II, and III liabilities will be as shown in Table 6. Table 6 — Remaining Liability Acreage at the Peabody Sage Creek Mine Remaining Liability Acreage After Bond Release Interim and Permanent Program Areas (from Seneca II) Phase I Remaining Phase II Remaining Phase III Remaining SL -1 38.10 90.2 1697.6 Pre -Law Areas SL -1 67.40 68.79 68.79 New Permanent Program Areas SL -1 146.41 146.41 146.41 Bond release parcels included in the PSCM SL -01 Phase II bond release application have not been evaluated for Phase III reclamation success criteria. The reclamation cost estimate was last evaluated and updated in March 2013 during the Division's 2013 Midterm Review of the Peabody Sage Creek Mine permit. Costs for backfilling and grading, redistribution of topsoil, and re- establishment of vegetation were calculated in March 2013 to be $4,916,169.02. The Division proposes to release $995,884.55. Upon finalization of this bond release application (SL -01), the Division estimates the cost to complete remaining reclamation work at the site to be $3,920,284.47, the difference between $4,916,169.02 and $995,884.55 (SL -01). The Division currently holds a $6,160,431.65 self bond, No. SB -007 for the Peabody Sage Creek Mine, which is sufficient to assure completion of the remaining reclamation work at the site if Peabody Sage Creek Mine Page 14 July 22, 2013 Phase 11 Bond Release