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STATE OF COLOMDO <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 26, 2011 <br />Scott Cowman <br />Peabody Sage Creek Mine <br />36600 Routt County Road 27 <br />Hayden CO 81639 <br />Re: Peabody Sage Creek Mining, LLC <br />Notice of Intent to Explore <br />File No. X-2011-231-02 <br />Dear Mr. Cowman: <br />COLORADO <br />D I V I S I O N OF <br />RECLAMATION <br />MINING <br />SAFETY <br />The Division of Reclamation, Mining, and Safety (Division) has reviewed the <br />materials received on May 23, 2011 for the above referenced Notice of Intent to <br />Explore (NOI). This letter constitutes written notification as required by Rule <br />2.02.2(3). <br />Notification of Completeness (Rule 2.02.2) <br />NOI X-2011-231-02 is now complete. Surface use agreements representing right to <br />enter were received. As discussed with Jay James by phone on May 26, 2011, <br />cultural resources surveys are not required for site CCU070 since the site is on <br />private land and will explore private mineral interests. <br />Determination of the Proposed Activities as Coal Exploration (Rule 2.02.3(3)) <br />The activities described in the NOI qualify as "coal exploration" as defined by Rule <br />1.04(22). The coal exploration activities described will involve the removal of 250 <br />tons or less of coal. <br />Determination of Substantial Disturbance of the Land Surface (Rule 2.02.2(3)) <br />The coal exploration activities described will substantially disturbed the natural <br />land surface as defined by Rule 1.04(27). <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines