2012-11-05_REVISION - C1982056 (4)

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Pcabod 1111 ENERGY Twentymile Coal, LLC To: Jason Musick /Dan Hernandez From: Jerry Nettleton Date: November 2, 2012 Re: Foidel Creek Mine — Phase 1 Partial Bond Release Request Enclosed is our bond release package. I have not sent the notification letters required under Rule 3.03.2(1), given a question about who should be included in the distribution list (as discussed with Dan on 10/30/12). I have included a proposed distribution list in Appendix E of the package, which includes all surface and mineral owners directly affected for the proposed bond release areas, as well as those property owners who are adjacent (properties touch the proposed release areas), and the relevant government /quasi - governmental entities identified in the Rule. As you will note, the proposed distribution list includes 14 property owners and other entities. Given that our Permit Area covers roughly 40 square miles, a distribution list including all surface, mineral, and adjacent property owners for the Permit Area would include roughly 50 property owners and entities. The language of Rule 3.03.2(1) indicates that notification should include "...adjoining property owners, surface owners ... ", and does not provide a reference for the term, "adjoining ". Absent a specific reference, adjoining typically means adjacent to or touching, and a reasonable and logical reference would be the subject areas (proposed bond release areas). I would submit that this interpretation would also reasonably and logically address the intent of the notification requirement, which is to provide property owners /entities which may be affected by the bond release application, notification of the requested action and opportunity to obtain relevant information, and to comment, as appropriate. Given the size of the Permit Area, a property owner that is within or adjacent to the Permit Area could be up to 6 miles or more from the proposed bond release area and would not be affected in any way by the requested bond release. Given the noted considerations, I submit that the proposed distribution list is consistent with the language of the applicable Rule; ie: "adjoining property owners, surface owners... ". Please review, and let me know your thoughts, so that we can proceed with production and mailing of the required notifications. Thanks for your time and consideration — Best regard Jerry Memo 1 REC 1VE=,D S L Division c . t Mining and Sa`o`_J