Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN 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 *
KLINGER JEFFERY L
  2. Issuer Name and Ticker or Trading Symbol
PEABODY ENERGY CORP [BTU]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
VP, GC & Sec.
(Last)
(First)
(Middle)
701 MARKET STREET
3. Date of Earliest Transaction (Month/Day/Year)
03/01/2006
(Street)

ST. LOUIS, MO 63101-1826
4. If Amendment, Date Original Filed(Month/Day/Year)
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 Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 03/01/2006   M   11,252 A $ 7 65,184 (1) D (2)  
Common Stock 03/01/2006   M   1,284 A $ 6.715 66,468 (1) D (2)  
Common Stock 03/01/2006   M   2,464 A $ 7.298 68,932 (1) D (2)  
Common Stock 03/01/2006   S(3)   1,125 D $ 48.55 67,807 (1) I (2) By trust
Common Stock 03/01/2006   S(3)   1,641 D $ 48.48 66,166 (1) I (2) By trust
Common Stock 03/01/2006   S(3)   1,406 D $ 48.4 64,760 (1) I (2) By trust
Common Stock 03/01/2006   S(3)   1,266 D $ 48.37 63,494 (1) I (2) By trust
Common Stock 03/01/2006   S(3)   984 D $ 48.36 62,510 (1) I (2) By trust
Common Stock 03/01/2006   S(3)   4,531 D $ 48.27 57,979 (1) I (2) By trust
Common Stock 03/01/2006   S(3)   937 D $ 48.25 57,042 (1) I (2) By trust
Common Stock 03/01/2006   S(3)   1,781 D $ 48.2 55,261 (1) I (2) By trust
Common Stock 03/01/2006   S(3)   47 D $ 48.19 55,214 (1) I (2) By trust
Common Stock 03/01/2006   S(3)   563 D $ 48.18 54,651 (1) I (2) By trust
Common Stock 03/01/2006   S(3)   141 D $ 48.15 54,510 (1) I (2) By trust
Common Stock 03/01/2006   S(3)   47 D $ 48.13 54,463 (1) I (2) By trust
Common Stock 03/01/2006   S(3)   187 D $ 48.12 54,276 (1) I (2) By trust
Common Stock 03/01/2006   S(3)   234 D $ 48.11 54,042 (1) I (2) By trust
Common Stock 03/01/2006   S(3)   703 D $ 48.1 53,339 (1) I (2) By trust
Common Stock 03/01/2006   S(3)   47 D $ 48.09 53,292 (1) I (2) By trust
Common Stock 03/01/2006   S(3)   141 D $ 48.07 53,151 (1) I (2) By trust
Common Stock 03/01/2006   S(3)   47 D $ 48.06 53,104 (1) I (2) By trust
Common Stock 03/01/2006   S(3)   1,031 D $ 48.05 52,073 (1) I (2) By trust
Common Stock 03/01/2006   S(3)   375 D $ 48.04 51,698 (1) I (2) By trust
Common Stock 03/01/2006   S(3)   47 D $ 48.03 51,651 (1) I (2) By trust
Common Stock 03/01/2006   S(3)   1,125 D $ 48.01 50,526 (1) I (2) By trust
Common Stock 03/01/2006   S(3)   656 D $ 48 49,870 (1) I (2) By trust
Common Stock 03/01/2006   S(3)   938 D $ 47.95 48,932 (1) I (2) By trust

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(Month/Day/Year)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Employee Stock Option (right to buy) $ 7 03/01/2006   M     11,252 05/21/2003(4) 05/21/2011 Common Stock 11,252 $ 0 0 (5) D  
Employee Stock Option (right to buy) $ 6.715 03/01/2006   M     1,284 01/15/2005 01/15/2012 Common Stock 1,284 $ 0 0 (5) D  
Employee Stock Option (right to buy) $ 7.298 03/01/2006   M     2,464 01/02/2004 01/02/2013 Common Stock 2,464 $ 0 24,256 (5) D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
KLINGER JEFFERY L
701 MARKET STREET
ST. LOUIS, MO 63101-1826
      VP, GC & Sec.  

Signatures

 Jeffery L. Klinger by Joseph W. Bean, Attorney-in-Fact   03/03/2006
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(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) Amount includes 3,496 shares held directly by the reporting person.
(2) Pursuant to the Rule 10b5-1 trading plan referred to in footnote 3, upon exercise of the options the shares are immediately transferred to a family trust.
(3) This sale was effected pursuant to a pre-existing Rule 10b5-1 trading plan adopted by the reporting person.
(4) Of the 11,252 options, 2,501 vested on May 21, 2003 and 8,751 vested on May 21, 2004.
(5) The numbers reported in this column 9 of Table II do not include an additional 315,884 options with different expiration dates and exercise prices.

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