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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 />May 7, 2010 <br />Michael Ludlow <br />Sage Creek Coal Company, LLC <br />29515 Routt County Road 27 <br />Oak Creek, CO 80467 <br />Re: Peabody Sage Creek Mine - Proposed Decision (Permit No. C-2009-087) <br />Proposed Decision <br />New Permit Application <br />Dear Mr. Ludlow: <br />COLORADO <br />D I V I S ION OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />James B. Martin <br />Executive Director <br />Loretta E. Pineda <br />Director <br />Enclosed you will fmd the Division of Reclamation, Mining and Safety's Proposed Decision Package for the <br />Peabody Sage Creek Mine. Notice of the proposed decision will be published in the Steamboat Pilot as soon as <br />possible. The first publication will initiate the thirty (30) day public comment period for the Division's decision. <br />Documentation must be submitted to the Division demonstrating that a copy of the application and any subsequent <br />modifications were sent to the appropriate federal agencies. The project may not proceed until all copies have <br />been sent. <br />Please be advised that federal mine plan approval must be obtained from the Office of Surface Mining <br />Reclamation and Enforcement (OSM). OSM approval is required, in addition to State permit approval, before <br />operations affecting federal coal may commence. <br />The Division must review and approve the bond prior to permit issuance. A bond, in the amount of $5,466,264.00 <br />should be submitted prior to the end of the public comment period, with the approved Division form. <br />If you have any questions, please contact me. <br />Sincerely, <br />Tom Kaldenbach <br />Environmental Protection Specialist <br />TAK/Jrc <br />Enclosure(s) <br />cc: Vern Pfannenstiel, Peabody Investments Corp <br />C-AP-07_C2009087_TAK_05072010104617.doc <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines