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STATE OF COLORADO <br />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 />April 1, 2010 <br />Mr. Vern Pfannenstiel <br />Manager Environmental Services <br />Peabody Energy Corporation <br />3001 West Shamrell Boulevard, Suite 110 <br />Flagstaff, AZ 86001 <br />Re: Peabody Sage Creek Mine (C-2009-087) <br />Adequacy Review of Permit Application <br />Dear Mr. Pfannenstiel: <br />COLORADO <br />D I V I S I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />James B. Martin <br />Executive Director <br />The Division of Reclamation, Mining and Safety (DRMS) has reviewed Sage Creek <br />Coal Company's (SCCC's) adequacy response and permit application update package <br />dated March 16, 2010 (received by our office March 18, 2010). SCCC submitted the <br />package in response to DRMS adequacy comment letters of February 11 and 16, and <br />March 2, 5, and 11, 2010. <br />We previously found the following DRMS comments to be adequately addressed by <br />SCCC: 1 through 4, 6 through 9, 13, 15, 16a, 16b, 16c(ii), and 17 through 47. Our <br />review of the March 16 package has found that SCCC's responses adequately address <br />the following DRMS comments: 5, 10, 11, 12, 14, 16c (i and iii), 48 through 54, 56, 58 <br />through 65, and 67. <br />Set forth below are the remaining DRMS comments that have not yet been adequately <br />addressed. DRMS is in the process of preparing a reclamation cost estimate which may <br />result in additional adequacy comments that we will send to you when they become <br />available. <br />55. Please revise the subsidence monitoring plan in the permit application to include: <br />a. Premining surveys of Boeddeker Reservoir #15 and County Road 27, <br />b. A premining survey of the thalweg of Grassy Creek, and provision for a <br />postmining survey of the creek in the event mining is not subsequently <br />proposed beyond the current plan, <br />c. Semi-annual reporting of subsidence monitoring results, as required by <br />Rule 2.05.6(6)(c)(i)(E), and <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines