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?pQ?aod <br />.y <br />Peabody Energy <br />Colorado Coal Resources, LLC <br />July 28, 2009 <br />Mr. Tom Kaldenbach <br />Environmental Protection Specialist <br />Colorado Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />RE: Revised Baseline Hydrology Work Plan - Peabody Sage Creek Mine <br />Dear Mr. Kaldenbach: <br /> <br />701 Market Street <br />St. Louis, Missouri 63101-1826 <br />314-342-3400 <br /> <br />Division ot n, <br />Mining and Safety <br />I'm writing in response to our phone conversation on July 16t" regarding Colorado Coal <br />Resources' (CCR) commitment in the revised baseline hydrology work plan dated June 2008 to <br />perform a spring and seep inventory in the field within and adjacent to the Peabody Sage Creek <br />Mine (PSCM) permit boundary. The intent of this commitment was driven by plans to construct <br />the portal and a mine access road and coal haulage road to the south of the proposed permit <br />boundary out through the Twenty Mile Park to the Foidel Creek Mine. The field inventory was <br />intended to identify springs and seeps that might be impacted by the construction of these new <br />mine features. <br />During my visit last week to the Seneca Coal Company offices, Dennis Jones and I reviewed <br />available spring and seep information within the Seneca II mine area in the vicinity of the portal, <br />and believe there is no evidence of any significant spring or seep that has not been previously <br />identified. Map 2.04.7_M1, Hydrology in the PSCM permit application package (PAP) shows <br />several springs in the vicinity of the portal, and applicable information from these sites is <br />discussed in Section 2.04.7 and included in Exhibit 2.04.7_El. Map 2.04.7_M2, Surface <br />Diversions, Reservoirs, and Water Supply Wells in the PSCM PAP shows water rights and <br />hydrologic features within the permit boundary and within one mile outside of the boundary. <br />Review of Map 2.04.7_M2 indicates there are no springs or seeps within the portal area that have <br />been assigned water rights by the Colorado State Engineers Office. <br />The recently submitted PAP for the PSCM does not propose a new mine access road or a new <br />coal haulage road, so CCR believes there is no need to conduct the spring and seep inventory in <br />these areas. In addition, our review of the available hydrologic information regarding springs and <br />seeps in the vicinity of the proposed portal indicates existing springs have been identified and <br />discussed in the PAP, and no further field inventory for these features is warranted at this point in <br />time. <br />Please don't hesitate to contact me via phone at 929.913.9218 or by email at <br />icochran@peabodyenergy.com if you have any questions. <br />Si cer ly, / / <br />CZXU4 - <br />J hn Cochran <br />anager Environmental Hydrology <br />Peabody Investments Corporation