Ownership Submission
FORM 3
 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
  CRAIG IAN S
 2. Date of Event Requiring Statement (Month/Day/Year)
01/23/2006		 3. Issuer Name and Ticker or Trading Symbol
PEABODY ENERGY CORP [BTU]
(Last)
(First)
(Middle)
701 MARKET STREET		 4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Grp. VP - Australian Ops.
 5. If Amendment, Date Original Filed(Month/Day/Year)
(Street)

ST. LOUIS, MO 63101		 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Beneficially Owned
1.Title of Security
(Instr. 4)		 2. Amount of Securities Beneficially Owned
(Instr. 4)		 3. Ownership Form: Direct (D) or Indirect (I)
(Instr. 5)		 4. Nature of Indirect Beneficial Ownership
(Instr. 5)
Common Stock 5,135 (1)
D
 

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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 4)		 2. Date Exercisable and Expiration Date
(Month/Day/Year)		 3. Title and Amount of Securities Underlying Derivative Security
(Instr. 4)		 4. Conversion or Exercise Price of Derivative Security 5. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 5)		 6. Nature of Indirect Beneficial Ownership
(Instr. 5)
Date Exercisable Expiration Date Title Amount or Number of Shares
Employee Stock Option (right to buy) 11/19/2007 05/19/2008 Common Stock 15,226 $ 7.145 D  
Employee Stock Option (right to buy) 07/01/2010 01/01/2011 Common Stock 36,396 $ 7.145 D  
Employee Stock Option (right to buy) 01/02/2006 01/02/2013 Common Stock 3,916 $ 14.595 D  
Employee Stock Option (right to buy) 01/02/2006(2) 01/02/2014 Common Stock 5,612 $ 20.975 D  
Employee Stock Option (right to buy) 01/03/2006(3) 01/03/2015 Common Stock 5,636 $ 38.655 D  
Employee Stock Option (right to buy) 01/03/2009 01/03/2016 Common Stock 7,566 $ 86.2 D  
Employee Stock Option (right to buy) 01/03/2007(4) 01/03/2016 Common Stock 7,337 $ 86.2 D  
Employee Stock Option (right to buy) 01/01/2010(5) 07/01/2010 Common Stock 33,720 $ 7.145 D  
Deferred Compensation Plan ? Common Stock Fund Units   (6)   (6) Common Stock 26,379 (7) $ (6) (7) D  

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
CRAIG IAN S
701 MARKET STREET
ST. LOUIS, MO 63101		       Grp. VP - Australian Ops.  

Signatures

Ian S. Craig By: Bryan L. Sutter, Attorney-in-Fact 01/31/2006
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 5(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Includes 1,135 shares acquired under the Company's Employee Stock Purchase Plan.
(2) Of the 5,612 options, 2,805 vested on January 2, 2006 and 2,807 vest on January 2, 2007.
(3) Of the 5,636 options, 1,879 vested on January 3, 2006, 1,878 vest on January 3, 2007 and 1,879 vest on January 3, 2008.
(4) Of the 7,337 options, 2,446 vest on January 3, 2007, 2,445 vest on January 3, 2008 and 2,446 vest on January 3, 2009.
(5) Of the 33,720 options, 5,750 vest on January 1, 2010 and 27,970 vest on January 1, 2010.
(6) The units represent compensation deferred under the Peabody Energy Corporation Deferred Compensation Plan (the "Plan") which are allocated to the Peabody Energy Corporation Common Stock Fund investment alternative and are to be settled in cash upon the reporting person's following termination of employment or retirement, subject to early withdrawal in certain specified events.
(7) Because the Peabody Energy Corporation Common Stock Fund investment alternative of the Plan is accounted by the plan administrator using unit accounting, the number of shares varies based on the closing price of Peabody Energy Corporation Common Stock on the applicable measurement date. Information reflects share value on January 27, 2006.

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