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Peabod <br />I/ 1111 ENERGY <br />Twentymile Coal, LLC <br />Mr. Jason Musick <br />Colorado Division of Reclamation, Mining and Safety <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />303.866.3567 X8134 <br />Re: Minor Revision MR12 -261, WMD 2012 Exploratory Drilling Program <br />Dear Mr. Musick; <br />With this submittal, Twentymile Coal, LLC (TC) is requesting CDRMS approval of a Minor Revision (MR12- <br />261) to our existing approved Mining and Reclamation Permit, for construction of drill -pads, and drilling and <br />logging of up to 5 exploration drillholes in our active Western Mining District (WMD). The purpose of the <br />proposed exploration program is to more accurately define structural conditions, including faulting, for planning <br />and implementation of ongoing and future mining operations in this area. The proposed activities would occur <br />on lands, and would affect minerals owned or controlled by TC, and would be conducted during the summer and <br />fall of 2012, as shown on Figure EX52 -F1, WMD 2012 Exploratory Drilling Program. Environmental baseline <br />studies, including cultural resource surveys and wildlife consultation with Colorado Parks and Wildlife, have <br />been completed for the proposed drill sites, and will be documented by a cultural resource survey report and <br />willdife consultation letter, which will be forwarded on receipt. <br />Drill -sites have been selected and located to facilitate access from existing County and ranch roads. Where <br />direct access from existing roads is not feasible, drilling equipment and supplies would travel overland short <br />distances during periods when ground conditions are favorable, to access the drill sites. Drill pads would be <br />approximately 75 x 75 feet (0.15 acres), with soil material stripping limited to an area around the drillhole <br />collar, and the area surrounding any mud pits necessary to support drilling operations, in order to minimize <br />disturbance and facilitate site reclamation. Nominal 5.625 -inch drillholes would be completed using <br />conventional rotary drilling methods and drilling mud as the circulation medium, to depths ranging from 1,300 <br />to 1,600 feet. Corehole samples would be recovered from some or all drillholes, and all drillholes would be <br />geophysically logged. On completion of drilling and logging, all drillholes would plugged and sealed in <br />accordance with State Engineer requirements, and drill sites would be reclaimed. <br />This submittal includes revised PAP text and supporting materials, as identified by the accompanying Summary <br />of Revisions /Additions. In order to take advantage of the 2012 summer field season, TC would like to initiate <br />the proposed exploration activities as soon as possible, and therefore, requests the assistance and cooperation of <br />the CDRMS is completing review and approval of this application in a timely manner. Once you have <br />opportunity to review this submittal, please feel free to contact me with any questions, or to discuss the <br />submittal and related matters. We appreciate your attention and assistance. <br />Best re <br />Jerry l ettlet <br />Environs n)/al Manager <br />cc: Mike Berdine /TC <br />Rocky Thompson /PE <br />" <br />29515 Routt County Road 27 <br />Oak Creek, CO 80467 <br />970.879.3800 <br />May 4, 2012 <br />