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Land and Coal Ownership <br />The ownership of the surface land for which bond release has been requested is State of <br />Colorado. Ownership of the coal that was mined from the bond release area was State of <br />Colorado. <br />II. SUMMARY OF THE BOND RELEASE PROCESS <br />Reclamation History of Bond Release Area <br />The total permit area of the Peabody Sage Creek Mine is presently 10,164 acres, of which <br />1,766.39 acres were previously disturbed by, and portions reclaimed by, Seneca Coal Company <br />(SCC) under the Seneca II Mine (CDRMS permit C -80 -005). The total disturbed acreage of the <br />Peabody Sage Creek Mine approved to be disturbed by PSCM is 1,912.80 acres including the <br />previously disturbed portions. The Division has processed five previous bond release <br />applications for the Seneca II Mine (SL -1, SL -2, SL -3, SL -4, and SL -5), with four (SL -1, SL -2, <br />SL -3, SL -4) having been associated with disturbed areas that presently exist within the current <br />Peabody Sage Creek Mine permit. <br />SCC bond release application SL -01 for the Seneca II Mine (C -80 -005) was submitted May 24, <br />2006 and found complete on July 18, 2006. At that time there were 2299.30 acres of actual on <br />the ground disturbance. Bond release SL -01 requested Phase I bond release on 2,247.7 <br />disturbed acres, which were composed of 326.5 acres of pre -law lands and 1921.2 acres of <br />interim program and permanent program lands. The Division approved the Phase I bond release <br />for 1,795.4 acres of interim program and permanent program lands and 259.1 acres of pre -law <br />lands on December 27, 2006. <br />SCC bond release application SL -02 for the Seneca II Mine (C -80 -005) was submitted June 27, <br />2007 and found complete on August 15, 2007. Bond release SL -02 requested final bond release <br />(Phase II and Phase III) on 259.1 reclaimed acres of pre -law lands within the permit area. SL -02 <br />was approved on November 29, 2007 for 257.71 acres. It was determined that Bond No. <br />9264191 issued by the National Fire Insurance Company of Hartford for Permit No. 75 -54 C /A, <br />in the amount of $1,355,000.00, was dedicated solely to the pre -law lands. Based on <br />reclamation cost assessments performed in association with SL -01 and SL -02, the Division <br />determined that reclamation liability associated with 68.79 acres of pre -law lands that were not <br />the subject of SL -02 was $285,484.00. Thus, the Division on November 29, 2007 approved via <br />SL -02 a reduction of Bond No. 9264191 in the amount of $1,069,516.00, from $1,355,000.00 to <br />$285,484.00. <br />SCC submitted an application for a Phase II bond release, SL -03, for the Seneca II Mine (C -80- <br />005) that was received by the Division on May 19, 2008 and found complete on June 18, 2008. <br />SCC initially requested Phase II release on 1,793.5 acres of interim program and permanent <br />program lands (311.1 acres of interim program lands and 1,482.4 acres of permanent program <br />lands). The reclaimed lands were divided into separate bond release blocks (BRB). Each BRB <br />included multiple reclamation parcels. Within a particular reclaimed block, parcels were <br />Peabody Sage Creek Mine Page 3 July 22, 2013 <br />Phase 11 Bond Release <br />