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RE NEE <br />Peabody „ �E <br />Peabody Sage Creek Mining, LLC <br />JAN 2 6 2012 <br />Division of reclamation <br />Mining and Safety <br />Colorado Department of Public Health and Environment <br />Water Quality Control Division <br />Permits and Enforcement Section <br />4300 Cherry Creek Drive South <br />Denver, CO 80246 -1530 <br />RE: Quarterly DMRs for CPDS Permit No. CO- 0048275, Peabody Sage Creek Mine <br />Dear Sir or Madam: <br />Pursuant to the quarterly reporting requirements contained in Colorado Discharge Permit <br />CO- 0048275 for the Peabody Sage Creek Mine, enclosed find the fourth quarter 2011 <br />discharge monitoring reports for Outfalls 002 to 004. <br />One excursion of effluent limits occurred this quarter, which involved the selenium <br />standard, 4.6 ug/l. The Outfall 002 selenium value was 5 ug/l on a sample collected <br />November 2. <br />In the previous three years (2008- 2010), Outfall 002 never exceeded the 4.6 ug/1 <br />selenium limit It is unknown as to why this exceedance occurred, although we suspect it <br />may be due to the record snowfall and rainfall, and near- record snowmelt runoff, which <br />occurred in Routt County this winter and spring. Perhaps that unusually high runoff <br />somehow mobilized the selenium, and carried it through the fall season. The mean <br />discharge for the fourth quarter of this year at Outfall 002 was 223 gpm, while in the <br />previous 10 years that value was only 89 gpm. In any case, we hope that these excursions <br />are transitory. The October 4th selenium value was 4 ug/1 and the December 5th selenium <br />value was 4.3 ugh!, which are both below the standard. <br />Please call me at 970 - 276 -5209, or email me at djones @peabodyenergy.com, if you have <br />any questions. <br />Sincerely, <br />Dennis Jones <br />Hydrologist I <br />Peabody Energy <br />P.O. Box 670 <br />36600 Routt County Rd. 27 <br />PO Box 250 <br />Hayden, CO. 81639 <br />(970) 276-7001 <br />January 19, 2012 <br />